Calculating Correlation in Microsoft Excel

Correlation is a statistical technique that can show whether and how strongly pairs of variables are related. For example, height and weight are related; taller people tend to be heavier than shorter people.

  • Correlation is Positive when the values increase together, and
  • Correlation is Negative when one value decreases as the other increases.

Like this :
correlation
Correlation can have a value:

  1. 1 is a perfect positive correlation
  2. 0 is no correlation (the values don’t seem linked at all)
  3. -1 is a perfect negative correlation.

The value shows how good the correlation is (not how steep the line is), and if it is positive or negative.

Example

Consider the following data samples :

X Y
6
35
22
65
3
95
9
125
5
155
6
185
8
215
33
245
9
275
10
305
2
335
12
365

FORMULA :

CORREL(<range of first column>,<range of second column>)

correlation

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