Wednesday, April 21, 2010

Correlation Matrix

A correlation matrix is a rectangular assortment of numbers that gives the correlation coefficient between one variable and every other variable included in the study. When the variables are compared to themselves the correlation coefficient is always 1 and is displayed diagonally down the chart. This correlation matrix shows the correlations between principle bond and foreign exchange markets among within several countries.

http://www.investors-routemap.co.uk/images/correlation.gif

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