If stock A goes up $1 , Stock B goes up $0.5, but stock C decreases by $0.5. What is the correletion between A&B and A&C The answer is 1, and -1 respectively. Do you know why?
If stock A goes up $1 , Stock B goes up $0.5, but stock C decreases by $0.5. What is the correletion between A&B and A&C The answer is 1, and -1 respectively. Do you know why?