If it is 0 then there is no relation at all.Pearson's correlation is used when you are working with two quantitative variables in a population.In spite of its many uses, prudence is required when using the methodology and analysing data.Why is pearson's correlation usedaCorrelation analysis contributes to the understanding of economic behavior, aids in locating the critically important variables on which others depend.
There are many reasons that researchers interested in statistical relationships between variables.3 i>>? correlational research is a preliminary way to gather information about a topic.With a positive correlation, individuals who score above (or below) the average (mean) on one measure tend to score similarly above (or below) the average on the other measure.Correlations are also useful for making predictions.When it is + 1, then there is perfect positive correlation.
A correlation has direction and can be either positive or negative (note exceptions listed later).The possible research hypotheses are that the variables will show a positive linear relationship, a negative linear relationship, or no linear relationship at all.The properties of correlation make the technique useful in interpreting the meaning derived from clinical data.Knowing how much of a change in b is produced by a change in a allows the psychologist to predict the change in b just by knowing the value of a.The direction of a correlation can be either positive or negative.
The scatterplot of a positive correlation rises (from left to right).Correlation is used to describe the linear relationship between two continuous variables (e.g., height and weight).
Correlation and Modern Portfolio Theory
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Oil- Forex Correlation
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