Pearson correlation is a measure of the linear relationship between two variables. It ranges from -1 to 1, where -1 indicates a strong negative relationship, 0 indicates no relationship, and 1 indicates a strong positive relationship. To calculate Pearson correlation, you first need to determine the mean and standard deviation of each variable, and then calculate the covariance between the two variables. This can then be used to calculate the Pearson correlation coefficient. This measure is commonly used in statistics and data analysis to assess the strength of the relationship between two variables.
Correlation analysis is a powerful tool in financial market analysis, helping investors to better understand the interdependence of different assets. … Read more
