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Negative Correlation Coefficients

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Why is it so difficult in the real world to find companies with negative correlation coefficients?

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Solution Summary

The solution explains how stock prices are positively or negatively correlated and uses correlated stock prices in different market conditions.

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Correlation Coefficient:
The sign of the correlation coefficient shows whether the two stock prices are positively or negatively correlated. Positively correlated stock prices move in the same directions, and have a correlation coefficient that greater than zero, but not greater than +1. Negatively correlated stock prices move in opposite directions, and have a correlation coefficient that less than zero, but not less than -1.

The correlation coefficient's numerical value shows the strength of the correlation between the two ...

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