Correlation Definitions, Examples & Interpretation

Correlation is a statistical term that refers to the relationship between two variables. There are many different correlation definitions, but all of them share the same basic concept: two variables are correlated if their values tend to move together over time.

Correlation can be measured using various methods, but the most common way to measure it is by calculating the correlation coefficient. The correlation coefficient ranges from −1 (perfect negative correlation) to 1 (perfect positive correlation).

The correlation between two variables can be affected by various factors, but the most common cause is the shared variables’ inherent tendency to move together. For example, if you measure the height and weight of two people, their weight and height are likely to be correlated because they are both measures of body weight.

Correlation is often used to predict future behavior, but it’s important to be aware of the limitations of correlation. For example, two highly correlated variables may not necessarily be causally related. Additionally, correlation does not imply causation – two variables may be correlated simply because they are both associated with other variables causing the relationship.

The interpretation of correlations is often contingent on the specific context in which they are used. For example, correlations between two variables might be used to predict the outcome of a third variable or to determine the strength of a relationship between the two variables.