How to calculate correlation co-efficient, Financial Management

Assignment Help:

Q. How to calculate correlation co-efficient?

The correlation co-efficient measures the nature and the extent of relationship between the stock market index return and the stock return in a particular period.

Coefficient of Correlation
The square of the correlation co-efficient is the co-efficient of determination. It gives the percentage of variation in the stock's return explained by the variation in the market's return.

Related Discussions:- How to calculate correlation co-efficient

Calculate betas against local indexes, Does is make any sense to calculate ...

Does is make any sense to calculate betas against local indexes when a company has a great part of its operations outside this local market? Both the betas calculated against l

Working capital, W orking Capital Working capital is measured as th...

W orking Capital Working capital is measured as the difference among organization present assets and its current liabilities. Therefore, it is interpreted by some as a meas

Parties to mutual fund trust, Parties to Mutual Fund Trust As is common...

Parties to Mutual Fund Trust As is common to any trust covered under the Indian Trust Act, the parties involved in a mutual fund trust are the sponsor or settler, the trustees,

Warrant, It is a long-term call option to purchase common stock at a specif...

It is a long-term call option to purchase common stock at a specified price.

Financial Analysis of Carrefour & Tesco Supermarkets, comparative analysis ...

comparative analysis on these two food retailing giants

How can we estimate that firm is going to benefit, Ho can we estimate that ...

Ho can we estimate that firm is going to benefit from projec To calculate how firm is going to benefit from project we need to calculate whether firm is earning the required ra

Five cs of obtaining credit, Five Cs of Obtaining Credit The five ...

Five Cs of Obtaining Credit The five crucial parts lenders examine previously issuing credit include: 1. Character. This is a calculation of the borrower's integrit

Secondary market organise exchanges-over the counter markets, How can secon...

How can secondary market organised the exchanges and over the counter markets? Exchanges and over-the-counter (OTC) markets: Secondary markets can be organised by exchanges

Evolution of hedge funds, Evolution of Hedge Funds: The establishment o...

Evolution of Hedge Funds: The establishment of the first Hedge Fund in the United States in the year 1949 by Alfred W. Jones marked the evolution of Hedge Fund industry. It was

Operating cycle., operating cycle in vegetable growing business in uganda.....

operating cycle in vegetable growing business in uganda..

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages