Negative Correlation
Barron's Business Dictionary:
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Negative Correlation
Inverse association between two variables.
As one variable becomes large, the other becomes small.
Negative correlation is represented by correlation coefficients less than 0.
See also positive correlation.
As one variable becomes large, the other becomes small.
Negative correlation is represented by correlation coefficients less than 0.
See also positive correlation.
| Negative Cash Flow, Negative Carry, Negative Amortization | |
| Negative Income Tax, Negative Working Capital, Negligence |
Investopedia Financial Dictionary:
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Negative Correlation
A relationship between two variables in which one variable increases as the other decreases, and vice versa. In statistics, a perfect negative correlation is represented by the value -1.00, while a 0.00 indicates no correlation and a +1.00 indicates a perfect positive correlation. A perfect negative correlation means that the relationship that appears to exist between two variables is negative 100% of the time. It is also possible that two variables may be negatively correlated in some, but not all, cases.
Investopedia Says:
Here are a few examples of a negative correlation: The more time I spend at the mall, the less money I have in my checking account. The higher my mutual fund’s expense ratio, the lower my investment returns. The more hours I spend at the office, the less time I spend with my family.
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