When two companies' profits tend to move in opposite directions in response to changing economic factors, the companies are likely
A) negatively correlated.
B) not correlated.
C) unrelated in industry sector.
D) in different regions of the world.

Question

Quizplus · Accepted Answer

When two companies' profits move in opposite directions in response to changing economic factors, it indicates a negative correlation between their financial performances. This means as one company's profits increase, the other's tend to decrease, and vice versa, in response to the same economic changes.

When Two Companies' Profits Tend to Move in Opposite Directions