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Meaning / Definition of

Correlation Trading

Categories: Strategies, Investing and Trading,

An investment strategy which utilizes the tendency of stocks to move together in order to minimize risk exposure. Combining stocks with low correlation reduces the riskiness of a portfolio as their returns are countercyclical to each other thus, a rise in one stock can mean a fall in the other.

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Definition / Meaning of

Fall

Categories: Banking,

nouna sudden reduction or loss of value Examplesa fall in the exchange rate • a fall in the price of gold • a fall on the stock exchange • Profits showed a 10 per cent fall.verbto be reduced suddenly to a lower price or value ExamplesShares fell on the market today. • Gold shares fell 10 per cent or fell 45 cents on the stock exchange. • The price of gold fell for the second day running. • The pound fell against the euro.to happen or to take place ExampleThe public holiday falls on a Tuesday.Usagepayments which fall duepayments which are now due to be made"...market analysts described the falls in the second half of last week as a technical correction to the market" [Australian Financial Review]"...for the first time since mortgage rates began falling in March a financial institution has raised charges on homeowner loans" [Globe and Mail (Toronto)]"...interest rates were still falling as late as June, and underlying inflation remains below the government's target of 2.5 per cent" [financial times]

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