Correlation and Scatter Plot

Correlation and Scatter Plot

• Correlation analysis is a kind of analysis in which the relationship between two variables is identified. In other words, it determines the strength of a link between two variables.

•  For example ‒ Height and weight of a person are correlated. That means normally, the height of a person increases his / her weight also increases. Another example is, ‒ if person spends more hours on exercising, his/her weight gets decreases.

• Correlation analysis is done to detect patterns and trends in data and to forecast future Occurrences.

Types of correlation

• There are three types of correlations ‒

1) Positive correlation: This is a type of correlation in which when one variable increases another variable also increases. It indicates direct relationship.

For example ‒ There is a positive correlation between ice‒cream sales and temperature. That means that on hotter days, people are more likely to buy ice‒cream. Another example is the amount of time students spent studying and their exam scores. That means if you study more, better score can be secured.

2) Negative correlation: A negative correlation is just the opposite. This is a type of correlation in which when one variable increases another variable decreases. This relationship line has negative slope. For example ‒ As the temperature decreases, the sale of winter coats increases. Another example ‒ As you spent more money, the bank aids balance decreases.

3) No correlation or Zero correlation : No correlation simply means that the variables behave very differently and thus, have no linear relationship. For example The size of a shoe and the color of shirt which I am wearing has no correlation.

A positive correlation indicates that the two variables move in the same direction, while a negative correlation indicates that the two variables move in opposite directions.