The answer is Correlated.
The firm's accounting profitability, ability to create shareholder value, and ability to generate economic value tend to be Correlated.
What is Correlated?
- Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other.
- Correlation is a statistic that measures the degree to which two variables move in relation to each other.
- Correlation may be easiest to identify using a scatter, especially if the variables have a non-linear yet still strong correlation.
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