Correlation

In investment terms, correlation is the extent to which the values of different types of investments move in tandem with one another in response to changing economic and market conditions.

Correlation is measured on a scale of -1 to +1. Investments with a correlation of +.5 or more tend to rise and fall in value at the same time. Investments with a negative correlation of -.5 to -1 are more likely to gain or lose value in opposing cycles.

A statistical association between variables.

A measure of similarity between variables of functions.

(1) The process of relating observations or tracks from one set of data to observations or tracks from another set of data, i.e., collecting data from different frames or sensors that presumably relate to the same target. (2) In air defense, the determination that an aircraft appearing on a radarscope, on a plotting board, or visual is the same as that on which information is being received form another source. (3) In intelligence usage, the process which associates and combines data on a single entity or subject from independent observations, in order to improve the reliability or credibility or the information.