Which of the following statements is most correct?
A) Perfectly negatively correlated series move exactly together and have a correlation coefficient of -1.0 while perfectly positively correlated series move exactly in opposite directions and have a correlation coefficient of +1.0.
B) Perfectly negatively correlated series move exactly together and have a correlation coefficient of +1.0 while perfectly positively correlated series move exactly in opposite directions and have a correlation coefficient of -1.0.
C) Perfectly positively correlated series move exactly together and have a correlation coefficient of +1.0 while perfectly negatively correlated series move exactly in opposite directions and have a correlation coefficient of -1.0.
D) Perfectly positively correlated series move exactly together and have a correlation coefficient of -1.0 while perfectly positively correlated series move exactly in opposite directions and have a correlation coefficient of +1.0.

Question

Quizplus · Accepted Answer

The statement that perfectly positively correlated series move exactly together and have a correlation coefficient of +1.0 is correct. However, the statement that perfectly negatively correlated series move exactly together and have a correlation coefficient of -1.0 is incorrect. In fact, perfectly negatively correlated series move exactly in opposite directions and have a correlation coefficient of -1.0. Therefore, option C is the most correct statement.

Which of the Following Statements Is Most Correct