What Is a Good Correlation Coefficient?


A correlation coefficient is a mathematical measure of how much one number can be influenced by changes in another. A correlation coefficient of 1 means that two particular numbers are perfectly correlated; while that of 0 shows that the numbers are not related in any way.
Q&A Related to "What Is a Good Correlation Coefficient"
It is a serious error. The Pearson coefficient cannot be larger than 1 so a value of 64 is clearly a very big error.
I think this website can help you: http://www.chem.utoronto.ca/coursenotes/…
Scatter plots are a fast way to view the
You can construct simple correlations with price data in Excel using the CORREL( function. More advanced solutions and actual tests can be run in software like R (free) or Matlab
3 Additional Answers
Generally, a good correlation coefficient is either 1 or -1. A positive coefficient of 1, implies that if one of the variables increases, then the other automatically increases by the same margin, while a negative coefficient of -1 implies the vice versa; if one vale increases, the other reduces. A coefficient of more than one means that there are other variables affecting the equation aside from the two related factors.
The correlation coefficient, also referred to as the cross-correlation coefficient, is a quantity that gives the quality of a least squares fitting to the primary data.  It determines the extent to which two variable's movements are related.
The correlation coefficient may refer to several things such as the Pearson product-moment correlation coefficient and goodness of fit. It can also refer to the intraclass correlation, rank correlation and coefficient of determination. For more information on this, visit the site wikipedia.
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