What is Correlation?

What is Correlation?

In the second video of the series, Abdulla explains the Pearson correlation coefficient. He discusses some of its key characteristics and outlines how to use it, step-by-step, with an example.
Overview

Correlation can be used to represent the direction and magnitude of the relationship between two assets.

Key learning objectives:

  • Understand and learn how to calculate correlation

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Summary
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Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

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