Price Correlation Matrix
1-year pairwise daily return correlations for watchlist stocks
Strong positive (>0.7)
Moderate positive (0.3–0.7)
Near zero
Negative
How to Use
Diversification
Stocks with low or negative correlation provide better portfolio diversification. Look for pairs below 0.3.
Risk Concentration
Highly correlated stocks (>0.8) tend to move together — holding both doesn't reduce risk much.