What is correlation in markets?
Correlation shows how closely two prices move together, on a scale from -1 to 1.
Near 1 means they tend to move in the same direction, near 0 means there is little connection, and near -1 means they tend to move in opposite directions. Correlations change over time, and often rise during a market panic, just when you want your investments to differ.
General information only, not financial advice. Investing can lose you money.