If security A has a correlation of 0.5 with security B, it indicates that security A causes half of the movement in security B.

Name: If security A has a correlation of 0.5 with security B, it indicates that security A causes half of the movement in security B.
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Question

Quizplus · Accepted Answer

Correlation measures the strength and direction of a linear relationship between two variables, but it does not imply causation or the proportion of movement one variable causes in another.

If Security a Has a Correlation of 0