Negative Correlation
Last Updated :
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Blog Author :
Edited by :
Ashish Kumar Srivastav
Reviewed by :
Dheeraj Vaidya, CFA, FRM
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Table Of Contents
Key Takeaways
- A negative correlation indicates that when one variable increases, the other variable tends to decrease, and vice versa, showing an inverse relationship in value.
- The correlation coefficient, which ranges from 0 to -1, measures the strength of the negative correlation. A coefficient of -1 represents a perfect negative correlation.
- Comprehending negative correlation requires a fundamental understanding of correlation as a statistical tool used to assess the extent of the relationship between two variables and their directional association.
Frequently Asked Questions (FAQs)
1
What is another term for a negative correlation?
2
What is a strong negative correlation?
3
What is a negative vs. positive correlation?
