Stop falling for misleading headlines. Understand the difference between correlation and causation, and learn how researchers prove real scientific facts.

Investors who increased allocations to international stocks, emerging markets, real estate, hedge funds, high-yield bonds, and natural resources during the previous decade did so at least partly ...

William J. Coaker, Jr., CFA®, CFP®, is the senior managing director of equity investments at the University of California. He earned a BS in accounting from Loyola Marymount University and an MBA from ...

Correlation coefficients are indicators of the strength of the linear relationship between two different variables, x and y. A linear correlation coefficient that is greater than zero indicates a ...

Modern portfolio theory emphasizes investing in uncorrelated assets to earn higher returns for a given level of risk. At current yields, bonds should offer returns that aren't highly correlated to ...

Market correlations are relationships between different currency pairs or assets that move in tandem or in opposite directions. These relationships can be strong or weak, and they can change over time ...