Correlation Analysis compares two array or two samples of data to show you if one sample of data can predict the other. You can analyse coorelation between a stock against another stock or a stock against an indicator... Coorrelation between an indicator and a stock. A value above +0.7 tell you that a change in the indicator will usually predict a change in the security's price. A value below -0.7 tell you that a change in the indicator will usually predict a move of the stock price in the opposite direction. A value near 0 tell you that there is no relationship between the security's price and the indicator.
