What is Correlation?
Correlation — A measure (−1 to +1) of how two assets move relative to each other — low or negative correlation improves diversification.
In simple terms
Gold often has low correlation with equities, aiding diversification.
Why Correlation matters when you invest
Understanding correlation helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Correlation — frequently asked questions
What is Correlation?
A measure (−1 to +1) of how two assets move relative to each other — low or negative correlation improves diversification.
What does Correlation mean in the stock market?
A measure (−1 to +1) of how two assets move relative to each other — low or negative correlation improves diversification. Gold often has low correlation with equities, aiding diversification.
Can you give an example of Correlation?
Gold often has low correlation with equities, aiding diversification.
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