Correlation is a statistical measure of how two securities move in relation to each other. Investors use correlation to diversify their portfolios and hedge against risk.

How to Calculate the Correlation Coefficient A simple calculation method is to use what's known as the Pearson correlation coefficient calculator, named after the English mathematician Karl Pearson.

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Calculating the Pearson correlation coefficient can be complicated but software makes it much easier. You can use several methods to calculate correlation in Excel.

Calculating correlation can be time-consuming but software like Excel makes it much easier. You can use several methods to calculate correlation in Excel.