How to Interpret Correlation Coefficient?

Correlation coefficient measures the strength and direction of a linear relationship between two variables

Values range from -1 to +1

1 indicates a perfect positive linear relationship

-1 indicates a perfect negative linear relationship

0 indicates no linear relationship

Values close to +1 indicate a strong positive relationship

Values close to -1 indicate a strong negative relationship

Values near 0 indicate a weak or no linear relationship

The sign shows direction

The absolute value shows strength

Correlation does not imply causation

Interpretation depends on context and field of study

A statistically significant correlation may still be weak in practical terms

A strong correlation may exist without being statistically significant in small samples

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