This article explains the significance of linear correlation coefficients for investors, how to calculate covariance for stocks, and how investors can use correlation to predict the market.

How to Calculate the Correlation Coefficient A simple calculation method is to use what's known as the Pearson correlation coefficient calculator, named after the English mathematician Karl Pearson.

The article How to Calculate Beta From Volatility and Correlation originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days.

Calculating correlation can be time-consuming but software like Excel makes it much easier. You can use several methods to calculate correlation in Excel.