Correlation measures the strength and direction of a linear relationship between two quantitative variables. The resulting coefficient, commonly denoted r, is dimensionβless and ranges from β1 (perfect negative linear relationship) through 0 (no linear relationship) to +1 (perfect positive linear relationship).
How it works β the coefficient is calculated by comparing the deviations of each pair of observations from their respective means. The formula aggregates the product of paired deviations and normalises it by the product of the standard deviations of each variable.
Interpretation β values close to Β±1 indicate a strong linear trend, while values near 0 suggest little to no linear association. Remember that correlation does not imply causation and is sensitive to outliers.
What is a correlation coefficient?
How do I interpret the correlation coefficient?
What does it mean if the correlation coefficient is zero?
Can correlation imply causation?
How do I calculate the correlation coefficient manually?
What types of data are suitable for correlation analysis?
Are there any limitations to using correlation?
Results are for informational purposes only and do not constitute professional advice.
