Two stocks with perfect negative correlation will have a correlation coefficient of:
A) +1.0
B) -2.0
C) 0.0
D) -1.0

Name: Two stocks with perfect negative correlation will have a correlation coefficient of: A) +1.0 B) -2.0 C) 0.0 D) -1.0
Brand: Quizplus
Rating: 4.7 (34 reviews)

Question

Quizplus · Accepted Answer

A perfect negative correlation between two stocks means that when one stock moves in one direction, the other stock moves in the opposite direction. This is represented by a correlation coefficient of -1.0.

Two Stocks with Perfect Negative Correlation Will Have a Correlation