Calculating the correlation between two stocks / Analyzing stock returns / Episode 5

We explain how to calculate the correlation between two stocks using Excel and show how to construct a correlation matrix.

0:00 Correlation - comovement in stock prices
1:25 Using Excel to compute stock correlations
4:38 Perfect positive correlation
6:05 Corr(A, B) = Corr(B, A)
7:41 Stock correlations vary over time

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