CluenexGlossary · Stock basics
Correlation
How closely two stocks’ daily moves follow each other, from minus 1 to plus 1.
Why it matters
Owning stocks that all move together gives less protection than it looks. Diversification comes from low correlation.
How to read it
Above 0.7 the stocks largely move as one; near 0 they move independently.
Related
In the Cluenex app, this explanation opens next to every correlation figure, with the live reading for the stock you are looking at. Open it in Cluenex