The data in the accompanying table represent the annual rates of return for various stocks for a selection of years. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down?

Click the icon to view the table of annual rates of returns.

If your goal is to have low correlation between the two investments, you should select $$ since the linear correlation coefficient for these two stocks

Rates of Returns

$\backslash$table$[[,,,$General,Exxon,,$],[$Year$,$Cisco,Disney,Electric,Mobil,FirstEnergy,$\backslash$table$[[$Johnson$]]],[1999,1\mathrm{.}310,-0\mathrm{.}015,0\mathrm{.}574,0\mathrm{.}151,-0\mathrm{.}266,0\mathrm{.}125],[2000,-0\mathrm{.}286,-0\mathrm{.}004,-0\mathrm{.}055,0\mathrm{.}127,0\mathrm{.}478,0\mathrm{.}143],[2001,-0\mathrm{.}527,-0\mathrm{.}277,-0\mathrm{.}151,-0\mathrm{.}066,0\mathrm{.}184,0\mathrm{.}180],[2002,-0\mathrm{.}277,-0\mathrm{.}203,-0\mathrm{.}377,-0\mathrm{.}089,-0\mathrm{.}015,-0\mathrm{.}079],[2005,0\mathrm{.}029,-0\mathrm{.}129,-0\mathrm{.}014,0\mathrm{.}118,0\mathrm{.}287,-0\mathrm{.}033],[2006,0\mathrm{.}434,0\mathrm{.}443,0\mathrm{.}093,0\mathrm{.}391,0\mathrm{.}267,0\mathrm{.}121],[2008,-0\mathrm{.}396,-0\mathrm{.}306,-0\mathrm{.}593,-0\mathrm{.}193,-0\mathrm{.}302,-0\mathrm{.}066],[2009,0\mathrm{.}459,0\mathrm{.}417,-0\mathrm{.}102,-0\mathrm{.}171,0\mathrm{.}005,0\mathrm{.}113],[2011,-0\mathrm{.}108,0\mathrm{.}016,0\mathrm{.}013,0\mathrm{.}187,0\mathrm{.}278,0\mathrm{.}099],[2012,0\mathrm{.}116,0\mathrm{.}348,0\mathrm{.}216,0\mathrm{.}047,-0\mathrm{.}021,0\mathrm{.}111],[2014,0\mathrm{.}242,0\mathrm{.}269,-0\mathrm{.}016,-0\mathrm{.}025,0\mathrm{.}338,0\mathrm{.}163]]$