Correlation

Read Section 8-3b- Match each of the following statements with the correlation that they best describe

- A. B. C.	asset returns move in opposite directions
- A. B. C.	Greatest Diversification benefit
- A. B. C.	Asset returns move in the same direction (either positive or negative together)
- A. B. C.	Returns are not related and move in no pattern to one another

A.

Positive Correlation

B.

Negative Correlation

C.

Correlation of zero