if company y announces a major technological breakthrough in july, which outcome is most likely for the…

if company y announces a major technological breakthrough in july, which outcome is most likely for the correlation between company x and company y? the correlation between company x and company y will increase as both companies benefit from the technological breakthrough. the correlation between company x and company y may decrease if the breakthrough primarily benefits company y. the correlation will remain the same because both the breakthrough will cause both companies to
Answer
Brief Explanations:
If the technological breakthrough mainly benefits Company Y, it may give Company Y a competitive edge over Company X. This could lead to different performance - trajectories for the two companies, thus potentially decreasing the correlation between them.
Answer:
The correlation between Company X and Company Y may decrease if the breakthrough primarily benefits Company Y.