Correlation Matrix in Python: How Correlated are COVID-19 Cases and Different Financial Assets?
This article shows how you can create a correlation matrix in Python to visualize the correlation between various asset classes … Read more
Pearson Correlation
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.