What is Correlation?

Correlation measures how closely two numeric variables move together, on a scale from -1 (opposite) through 0 (unrelated) to +1 (together).

Correlation explained

A high positive correlation between ad spend and sales means they tend to rise together. It does not show that one causes the other: both might be driven by season, or the link might be coincidence.

Correlation also captures only straight-line relationships and is easily distorted by outliers, so look at a scatter plot as well as the number.

Example

Ice cream sales and sunburn cases are correlated because both rise in hot weather, not because one causes the other.

Frequently asked questions

What is Correlation?
Correlation measures how closely two numeric variables move together, on a scale from -1 (opposite) through 0 (unrelated) to +1 (together).
Can you give an example of Correlation?
Ice cream sales and sunburn cases are correlated because both rise in hot weather, not because one causes the other.