You can use several methods to calculate correlation in Excel. Understanding Correlation . The correlation coefficient ranges from -1 to 1. Exactly 1 is considered perfect.

Thus, if we calculate the correlation coefficient including this outlier, it would suggest a weaker correlation between the stock and the S&P 500 than actually exists on most trading days.

To find the correlation between two stocks, you’ll start by finding the average price for each one. Choose a time period, then add up each stock’s daily price for that time period and divide ...

Step 2: Calculate the 90-day correlation of Apple and S&P 500 by using the shorthand command in the spreadsheet. It won't matter whether Apple is the first or second array, just as long as the ...

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These numbers range from -1 to +1, with zero describing no correlation at all. A beta coefficient of 1 means that a stock tends to move with the overall market.

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