How to Calculate a Correlation Coefficient?

Answer The correlation coefficient is a number that ranges from one to negative one and demonstrates the strength of the relationship between two variables. If the number is near zero, it is weak. When t... Read More »

Top Q&A For: How to Calculate a Correlation Coefficient

How to Calculate the Coefficient of Correlation?

Population and sample formulas--same calculations, different symbolsThe coefficient of correlation is used in conjunction with a scatter diagram and the covariance to provide a measure of the stren... Read More »

How to Calculate the Coefficient of a Correlation on a Calculator?

The correlation coefficient is a way to determine the strength of the linear association between two variables, such as "X" and "Y." The correlation will always be between the numbers "-1" and "1."... Read More »

How to Calculate Stock Correlation Coefficient?

It's often useful to know if two stocks tend to move together. For a diversified portfolio, you'd want stocks that are not closely related. The Pearson Correlation Coefficient helps to measure the ... Read More »

How to Calculate Spearman's Rank Correlation Coefficient?

The formulaSpearman's rank correlation coefficient allows you to identify easily the strength of correlation within a data set of two variables, and whether the correlation is positive or negative ... Read More »