TABLE OF CONTENTS
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11. INVESTING HIEROGLYPHICS
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A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicate's that the security's price will be more volatile than the market. - Investopedia
Semivariance: A similar calculation to standard deviation, but rather than measuring variation of above and below an average or expected return, it just measures the variation below the average return. This measurement is used because an investor often doesn't wish to take into account the variation of a group of securities or funds that are above the average return, rather he/she is only concerned with variation that falls below the average return.
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Correlation Coefficient: The correlation coefficient is a measure that determines the degree to which two variables movements are associated. The range of values for the correlation coefficient is -1.0 to 1.0. A correlation of -1.0 indicates a perfect negative correlations, while a correlation of 1.0 indicates a perfect positive correlation. -Investopedia
When it comes to investing, the correlation coefficient measures the correlation between a given security to another security. |
Coefficient of Determination: The statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a market or benchmark index. -Referred from Investopedia
The range of this coefficient is from 0 to 100. The closer it is to 100 the more the movement of the given security is correlated to that of the market or benchmark. |