Financial correlation

Financial correlation is a way to measure how closely two things move with each other. It can be used to measure if stocks, bonds, commodities, or other things are moving together. For example, if Stock A and Stock B had a high financial correlation, this would mean that if Stock A goes up, then Stock B is likely to go up too. The opposite would be true for a low financial correlation, which would mean that if Stock A goes down, Stock B may not follow.