      When stocks are positively or negatively correlated, movement in onestock is followed by movement in other correlated stocks. The degree ofcorrelation, positive or negative, will determine to what degree prices ofcorrelated stocks move. Because different stocks have some degree ofcorrelation to one another, it is easy to understand that different sectors(which are made up of groups of correlated stocks) are correlated to oneanother. Taking this concept one step further, it becomes clear why thereis a correlation between different broad market averages, such as the DowIndustrials, the S&P 500 and the Russell 2000. One can also see whydifferent global markets are correlated to varying degrees to one another.