Statistic

Everything You Need To Know About Correlation

Correlation is one of the most fundamental statistical concepts used in almost any sectors. For example, as in portfolio management, correlation is often used to measure the amount of diversification among the assets contained in a portfolio. Choosing assets with low or negative correlation with each other can help to reduce the risk of a portfolio. In addition, correlations give insights about marketing strategies and business outcomes in marketing research, which further help marketers make actionable decisions, and ultimately, grow businesses.