What Is the Correlation Coefficient? The correlation coefficient is a metric that measures the strength and direction of a relationship between two securities or variables, such as a stock and a ...

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

Many traders find that it’s easier to sustain success through stocks that meet certain characteristics, which they understand enough to trade on a consistent basis. These stocks could be in a certain ...