Correlation

Correlation is a statistical measure of how two return series move in relation to each other.

Why this matters to income investors

Assets that move together may fail to diversify losses when income is under stress.

How to use correlation in your research

Look at the specific exposure and the period measured. Ask whether the risk could reduce cash income, force a sale, or cause several holdings to weaken together; a single summary statistic cannot answer that alone.

This material is general education and information, not individualized investment, tax, or legal advice.