Calculating the Pearson correlation coefficient can be complicated but software makes it much easier. You can use several methods to calculate correlation in Excel.

This article explains the significance of linear correlation coefficients for investors, how to calculate covariance for stocks, and how investors can use correlation to predict the market.

Correlation is a statistical measure of how two securities move in relation to each other. Investors use correlation to diversify their portfolios and hedge against risk.

Correlation measures the linear relationship between two variables. It gives an indication of the strength of the relationship by measuring and relating the variance of each. Correlation answers the ...