The correlation between Stock A and Stock B is 0.5,
The correlation between Stock C and Stock B is -0.2,
Q: What is the correlation between Stock A and Stock C?
The correlation between Stock A and Stock B is 0.5
stock A go up by 1, b go up by 0.5
The correlation between Stock C and Stock B is -0.2
Stock C go down by 4, stock B go up by 0.5
Q: What is the correlation between Stock A and Stock C?
Stock A go up by 1, stock C go down by 4
I have no idea what is correlation, or is this econs or maths... i just assume it means proportional and did it this way. probably is wrong, haha
By correlation, I supposed you are talking about correlation coefficient?
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