Two variables that move in opposite directions are said to be inversely related.
A negative correlation is a relationship between two variables that move in opposite directions. In other words, when variable A increases, variable B decreases. A negative correlation is also known as an inverse correlation.
The concept of negative correlation is important for investors or analysts who are considering adding new investments to their portfolio. When market uncertainty is high, a common consideration is re-balancing portfolios by replacing some securities that have a positive correlation with those that have a negative correlation.
Here are some common examples of a negatively correlated relationship between assets:
1. Oil prices and airline stocks
2. Gold prices and stock markets (most of the time, but not always)
3. Any type of insurance payoff
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Answer:
2/1
Step-by-step explanation:
Answer:
Step-by-step explanation:
1)-0.22
2) -0.055
3)0.61
4)-1.972
Can someone make sure for me? My calculators broken.
-viridiancat4, an 8th grader! :)
A knitter with 14 skeins of yarn can make 7 scarves
Explanation:
We can use a proportion to solve this
4 skeins of yarn
-----------------------
2 scarves
That is the information we know. What we want to do is find out how many scarves for 14 skeins of yarn, like this
4 14
-- = ---
2 ?
To get from 4 to 14, you multiply by 3.5. We must to the same thing to the bottom as well. So we multiply 2 by 3.5, which gives us 7
x3.5
4 14
-- = ---
2 7
x3.5
