Overlapping area represents the amount of risk that can be diversified away by holding Arrow Electronics Inc and Micron Technology Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Micron Technology and Arrow Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Arrow Electronics are associated (or correlated) with Micron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micron Technology has no effect on the direction of Arrow Electronics i.e. Arrow Electronics and Micron Technology go up and down completely randomly.