What is the correlation between stocks X and Y?
A)0.26
B)-0.96
C)0.96
D)0.51

Name: What is the correlation between stocks X and Y? A)0.26 B)-0.96 C)0.96 D)0.51
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

A correlation coefficient of -0.96 indicates a strong negative correlation between stocks X and Y. This means that as the value of one stock increases, the value of the other stock decreases. This is an important piece of information for investors who are looking to diversify their portfolio and reduce risk through correlation analysis.

What Is the Correlation Between Stocks X and Y