STATISTICAL TECHNIQUES AND TOOLS
REGRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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positive correlation
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negative correlation
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no correlation
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not enough info
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Detailed explanation-1: -For example, when two stocks move in the same direction, the correlation coefficient is positive. Conversely, when two stocks move in opposite directions, the correlation coefficient is negative.
Detailed explanation-2: -For example, if variables X and Y have a correlation coefficient of-0.1, they have a weak negative correlation, but if they have a correlation coefficient of-0.9, they would be regarded as having a strong negative correlation.
Detailed explanation-3: -A negative correlation is a relationship between two variables such that as the value of one variable increases, the other decreases. Correlation is expressed on a range from +1 to-1, known as the correlation coefficent. Values below zero express negative correlation.