Correlation measures the strength and direction of a linear relationship between two variables.
Types of Correlation:
- • Pearson (r): Linear correlation for continuous data
- • Spearman (ρ): Rank correlation for ordinal data
- • Kendall (τ): Rank correlation based on concordance
Interpretation Guide:
- • ±0.9 to ±1.0: Very strong correlation
- • ±0.7 to ±0.9: Strong correlation
- • ±0.5 to ±0.7: Moderate correlation
- • ±0.3 to ±0.5: Weak correlation
- • 0.0 to ±0.3: Very weak correlation
Applications:
- • Financial market analysis and risk assessment
- • Scientific research and data validation
- • Quality control and process optimization
- • Medical research and clinical studies