**Negative correlation, **

### Definition of Negative correlation:

Negative correlation is a relationship between two variables in which one variable increases as the other decreases, and vice versa. In statistics, a perfect negative correlation is represented by the value -1, a 0 indicates no correlation, and a +1 indicates a perfect positive correlation. A perfect negative correlation means the relationship that exists between two variables is negative 100% of the time.

See correlation.

Negative correlation or inverse correlation is a relationship between two variables whereby they move in opposite directions. If variables X and Y have a negative correlation (or are negatively correlated), as X increases in value, Y will decrease; similarly, if X decreases in value, Y will increase. The degree to which one variable moves in relation to the other is measured by the correlation coefficient, which quantifies the strength of the correlation between two variables.

### How to use Negative correlation in a sentence?

- Negative correlation or inverse correlation is a relationship between two variables whereby they move in opposite directions. This relationship is measured by the correlation coefficient "r", while the square of this figure "R-squared" indicates the degree to which variation in one variable is related to the other.
- Correlation between two variables can vary widely over time. Stocks and bonds generally have a negative correlation, but in he decade to 2018, their correlation has ranged from -0.8 to 0.2.
- Negative correlation is a key concept in portfolio construction, as it enables the creation of diversified portfolios that can better withstand portfolio volatility and smooth out returns.

Meaning of Negative correlation & Negative correlation Definition