If the goal is to have low correlation between two stocks, what linear correlation coefficient be picked and why? if the goal is to have one stock go up when the other goes down, what linear correlation coefficient be picked and why?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section: Chapter Questions
Problem 46P
icon
Related questions
Question

If the goal is to have low correlation between two stocks, what linear correlation coefficient be picked and why?

if the goal is to have one stock go up when the other goes down, what linear correlation coefficient be picked and why?

 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,