Learn about the negative correlation coefficient, its significance, comparison with other coefficients, and real-world ...

With two different risky assets, an investor can minimize total portfolio volatility through the combination of investments with low to negative correlation. In a higher yield environment, 60/40 can ...

A negative, or inverse correlation, between two variables, indicates that one variable increases while the other decreases, and vice versa. This relationship may or may not represent causation between ...

Correlation coefficients range from -1 to +1, indicating the strength of relationships between variables. Investors use correlation coefficients for portfolio diversification to reduce risk.