Which of the following combinations of investments would provide the firm with the highest negative correlation?

Question

Quizplus · Accepted Answer

An airline company and gasoline manufacturer would provide the highest negative correlation because when gasoline prices rise, airlines often suffer due to increased operating costs. However, when gasoline prices decrease, airlines generally benefit from lower costs. Therefore, these two investments would have a strong negative correlation.

Which of the Following Combinations of Investments Would Provide the Firm