How To Calculate

Learn how to calculate anything
Menu
  • bmi
Home
statistics
How to Calculate Correlation.
statistics

How to Calculate Correlation.

Rosemary Njeri

Correlation is a statistical measure that expresses the extent to which two variables change together at a constant rate.

Correlation tells us if the two variables have a linear relationship, and the strength of that relationship.

Formula to calculate correlation.

How to Calculate Correlation.

σx is the standard deviation of variable x.

σy is the standard deviation for variable y.

Example:

Suppose the covariance of two stocks x and y is 90, calculate their correlation if their standard deviation is 5 and 3 respectively.

How to Calculate Correlation.

Therefore, their correlation is 6.

Share
Tweet
Reddit
Pinterest
Email
Prev Article
Next Article

Related Articles

How to Calculate Variance in Excel.
We can define variance as a measure of how far …

How to Calculate Variance in Excel.

How to Calculate Coefficient of Variation.
The coefficient of variation (CV) is the ratio of the …

How to Calculate Coefficient of Variation.

Leave a Reply Cancel Reply

Popular Posts

  • 5 Best AI Apps for Solving Complex …
    March 22, 2023 0

Categories

learntocalculate.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

How To Calculate

Learn how to calculate anything

Pages

  • About Us
  • Contact Us
  • Privacy Policy
Copyright © 2023 How To Calculate

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh