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Correlation Coefficient Calculator
Pearson correlation between two data series.
Correlation Coefficient (r)
0.9652
Strength
Very strong
Compares the first 7 matched points from each series.
This calculator computes the Pearson correlation coefficient between two comma-separated data series, commonly used to compare how two assets' returns move relative to each other.
Correlation is a cornerstone of diversification — pairing assets with low correlation can smooth portfolio returns even if each asset individually is volatile.
FAQ
What does the correlation coefficient range mean?
It ranges from -1 (perfectly inverse) to +1 (perfectly aligned), with 0 meaning no linear relationship between the two series.
Why does correlation matter for a portfolio?
Combining assets with low or negative correlation can reduce overall portfolio volatility, since they're less likely to move sharply in the same direction at the same time.