What is Correlation?

Do we have to learn it with high

calculations?

Do we have to go for a

complicated formula to

understand it?

So, how can we understand

Correlation?

Correlation is easy to

understand if you think about it

logically.

Correlation deals much more with common sense than numbers.

Correlation can be easily

understood as co relation.

Correlation is an average

relationship between two or more variables. 

Negative correlatio

n

Negative correlation

will be:

When the two variables move in the opposite direction.

When an increase in the value of one variable causes decrease in the value of another variable and vice- versa.

When the two variables move in the opposite direction.

When an increase in the value of one variable causes decrease in the value of another variable and vice- versa.

X Y

2 4

4 7

6 11

9 17

12 25

Y+

Positive Correlation

Positive Correlation

Negative Correlation

Negative Correlation

X Y

30 -2

21 -1

11 3

7 7

-3 12

Y-

Both inputs and outputs

are increasing

Both inputs and outputs

are increasing

Inputs and outputs are

going in opposite

directions

Inputs and outputs are

going in opposite

directions

When the two variables change in

equal proportion and move in the same

direction.

When the two variables change in

equal proportion and move in the same

direction.

When the two variables change in

equal proportion and move in opposite

directions.

When the two variables change in

equal proportion and move in opposite

directions.

No pattern = No correlationNo pattern = No correlation

There is no

relation between income

and height of a person.

There is no

relation between income

and height of a person.

Positive Correlatio

n

Negative Correlatio

n

Perfect positive

Correlation

Perfect Negative

Correlation Zero or No Correlatio

n