What is correlation?

Correlation refers to a statistical measurement that describes the strength and direction of a relationship between two variables. When we say that two variables are correlated, we indicate how one variable tends to change in relation to another. For instance, if one variable increases while the other also tends to increase, they are positively correlated. Conversely, if one variable increases while the other decreases, they have a negative correlation.

This concept is fundamental in statistics and data analysis, as it can help identify patterns and make predictions based on observed data. Recognizing correlation is crucial in fields such as economics, psychology, and the sciences, where researchers often seek to understand how different factors interact with one another. Understanding correlation helps provide insights into potential causation and the dynamics at play between different variables.