Correlation

You can choose whether or not to apply the Financial Settings "Correlation" parameter between loss distributions during an analysis. The default is "Off".

If you enable correlation by selecting "On", the loss engine applies the correlation and uncertainty defaults specified in the Loss Defaults section of the Administration Console. When you enable correlation, the following rules apply:

•       Single contract: Touchstone applies the Intra Correlation Factor between locations within (intra) a contract.

•       Multiple contracts: Touchstone applies the

•       Intra Correlation Factor between locations within (intra) a contract.

•       Inter Correlation Factor between contracts in (inter) a portfolio.