Exercise

# The correlation matrix

The **correlation matrix** can be used to estimate the linear historical relationship between the returns of multiple assets. You can use the built-in `.corr()`

method on a `pandas`

DataFrame to easily calculate the correlation matrix.

Correlation ranges from -1 to 1. The diagonal of the correlation matrix is always 1, because a stock always has a perfect correlation with itself. The matrix is symmetric, which means that the lower triangle and upper triangle of the matrix are simply reflections of each other since correlation is a bi-directional measurement.

In this exercise, you will use the `seaborn`

library to generate a heatmap.

Instructions 1/2

**undefined XP**

Calculate the `correlation_matrix`

of the `StockReturns`

DataFrame.