Korrelatsiooni
Korrelatsiooni, commonly referred to as correlation, is a statistical measure that describes the strength and direction of a relationship between two quantitative variables. The most widely used coefficient is Pearson's r, which assesses linear association and ranges from -1 to 1; +1 indicates a perfect positive linear relationship, -1 a perfect negative one, and 0 indicates no linear relationship.
Beyond linear relationships, rank-based measures such as Spearman's rho and Kendall's tau quantify monotonic associations using
Calculation and interpretation: For a sample, Pearson's r is computed as the covariance of X and Y
Cautions: Correlation measures association, not causation. It can be affected by outliers, nonlinearity, and restricted data
Applications and tools: Correlation is used in finance to study co-movements of asset returns, in psychology