Question:
Why is correlation important?
Author: Calum Heanue 1Answer:
The stronger the positive correlation, the more likely the stocks are to move in the same direction. Negative correlation indicates the stocks tend to move in the opposite direction of their mean
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![The stronger the positive correlation, the more likely the stocks are to move in the same direction. Negative correlation indicates the stocks tend to move in the opposite direction of their mean](https://markdown.memory.com/eq_uploads/1181166/question_image_f2ecb832-b9af-45c0-8259-c285ac7ad70b.jpg)
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Calum Heanue 1![Calum Heanue 1](https://markdown.memory.com/eq_uploads/1181166/question_image_545c899d-3897-48b7-a92c-052106aa0e11.jpg)