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Sunday, 04/30/2017 7:55:41 AM

Sunday, April 30, 2017 7:55:41 AM

Post# of 97387
Compensated Awareness Post View Disclaimer
The Correlation Coefficient tells us the relationship between two securities. Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two securities move in opposite directions when the Correlation Coefficient is negative. The examples above show 20-day and 50-day Correlation Coefficients. Longer term investors may use 150 or even 250 days (one year) for smoother lines that reflect longer term relationships.

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