This graph shows there is no relationship between the two variables. There is no correlation between the age of a pupil and their distance from school. 1 of 9. Previous image Next image.

Correlation is a statistical measure of how two securities move in relation to each other. Investors use correlation to diversify their portfolios and hedge against risk.

Vigen is the man behind the margarine graph, which he published on his website Spurious Correlations, external. The name gives the game away - he's a statistical provocateur.

Correlation analysis in portfolio management design is overrated. There isn’t much benefit derived from relying on low correlation among asset classes to achieve excess return. The best way to ...