2. Run a Correlation analysis using EXCEL to explore the relationship between the two companies/stock/prices.

1. Show the output from Excel
2. Interpret the correlation coefficient
3. Do you think combining these two stocks will reduce risk of investment in your portfolio? Explain.

DATA in attached screenshot.

Stock 1 hypothesis testing: Hypothesised Population Mean () = 0.15 Sample Standard Deviation (s) = 4.997812556 Sample Size (n) = 60 Sample Mean (X) = 0.874635732 Significance Level (a) = 0.05 Stock 2 hypothesis testing: Hypothesised Population Mean () = 0.15 Sample Standard Deviation (s) = 6.530837047 Sample Size (n) = 60 Sample Mean (X) = -2.238574117 Significance Level (a) = 0.05Descriptive statistics Question 3 WRT (ILU.AX) WRT (BLD.AX) Mean 0.874635732 Mean -0.238574117 Standard Error 0.645214827 Standard Error 0.843127437 Median 1.243671007 Median 0.135501355 Mode #N/A Mode 0 Standard Deviation 4.997812556 Standard Deviation 6.530837047 Sample Variance 24.97813034 Sample Variance 42.65183253 Kurtosis 0.00598448 Kurtosis 23.12353498 Skewness -0.163788123 Skewness -3.534646635 Range 24.48791128 Range 54.7810215 Minimum -11.38996139 Minimum -39.81623277 Maximum 13.09794989 Maximum 14.96478873 Sum 52.47814392 Sum -14.31444704 Count 60 Count 60