Negative correlation is a relationship between two variables in which one variable increases as the other decreases, and vice versa.

In statistics, a perfectly negative correlation is represented by the value -1.0, while 0 indicates no correlation, and +1.0 indicates a perfectly positive correlation.

An example of a strong negative correlation would be -0.97. The variables would move in opposite directions in a nearly identical move.

Pearson coefficients range from +1 to -1, with +1 representing a positive correlation, -1 representing a negative correlation, and 0 representing no relationship.

Example of using correlation coefficients Let’s say that you own three stocks, which we’ll call Company A, Company B, and Company C. All three are growth stocks in the technology space .

In our example, we find Pearson’s correlation coefficient to be r = − 0.94. We can interpret this as evidence of strong negative correlation given that r is a negative value and close to − 1. Step ...

The 90-day correlation coefficient between bitcoin and the dollar index has slipped to -0.70 from -0.11 four weeks ago. By Omkar Godbole Updated Apr 27, 2023, 3:06 p.m. Published Apr 27, 2023, 11: ...

For example, as a person's age increases during childhood, their height typically increases. This would be a positive correlation close correlation The relationship between two sets of data ...

A negative correlation between stocks and bonds could return in 2023 if the major catalyst for markets becomes recession rather than prospects of the Federal Reserve raising interest rates ...