Correlation Trading

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Definition: Correlation Trading


Correlation Trading


Full Definition of Correlation Trading


An investment strategy which utilizes the tendency of stocks to move together in order to minimize risk exposure. Combining stocks with low correlation reduces the riskiness of a portfolio as their returns are countercyclical to each other thus, a rise in one stock can mean a fall in the other.


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, from PayrollHeaven.com website: https://payrollheaven.com/define/correlation-trading/

Definition Sources


Definitions for Correlation Trading are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.