This article was published as a part of the Data Science Blogathon.
Can you tell how the prices of gold will change if the stock market goes up or how the prices of gold associated with the stock market? Yes, you can with the help of correlation, one of the most common measures used to associate two variables. It is the most common analytical tool used in analytics.
It is a statistical measure that defines the relationship between two variables that is how the two variables are linked with each other. It describes the effect of change in one variable on another variable.
If the two variables are increasing or decreasing in parallel then they have a positive correlation between them and if one of the variables is increasing and another one is decreasing then they have a negative correlation with each other. If the change of one variable has no effect on another variable then they have a zero correlation between them.
It is used to identify the degree of the linear relationship between two variables. It is represented by 𝝆 and calculated as:-
𝜌 (𝑥, 𝑦) = 𝑐𝑜𝑣(𝑥, 𝑦) /(𝜎𝑥 × 𝜎𝑦 )
Where
𝑐𝑜𝑣(𝑥, 𝑦) = covariance of x and y
𝜎x = Standard deviation of x
𝜎𝑦 = Standard deviation of y
𝜌 (𝑥, 𝑦) = correlation between x and y
The value of 𝜌 (𝑥, 𝑦) varies between -1 to +1.
A positive value has a range from 0 to 1 where 𝜌 (𝑥, 𝑦) = 1 defines the strong positive correlation between the variables.
A negative value has a range from -1 to 0 where 𝜌 (𝑥, 𝑦) = -1 defines the strong negative correlation between the variables.
No correlation is defined if the value of 𝜌 (𝑥, 𝑦) = 0
Determining the association between Fertility and Infant Mortality Rate (Using the existing dataset “swiss”)
1. Loading the dataset
> data1<-swiss > head(data1, 4)
Fertility Agriculture Examination Education Catholic Infant.Mortality Courtelary 80.2 17.0 15 12 9.96 22.2 Delemont 83.1 45.1 6 9 84.84 22.2 Franches-Mnt 92.5 39.7 5 5 93.40 20.2 Moutier 85.8 36.5 12 7 33.77 20.3
2. Creating a scatter plot using ggplot2 library
> library(ggplot2)
> ggplot(data1, aes(x = Fertility, y = Infant.Mortality)) + geom_point() +
+ geom_smooth(method = "lm", se = TRUE, color = 'black')
3. Testing the assumptions (Linearity and Normalcy)
Linearity#: Visible from the plot itself (True, the relationship is linear)
Normality$: Using Shapiro test (This is a test of normality, here we are checking whether the variables are normally distributed or not )
> shapiro.test(data1$Fertility) Shapiro-Wilk normality test data: data1$Fertility W = 0.97307, p-value = 0.3449 > shapiro.test(data1$Infant.Mortality) Shapiro-Wilk normality test data: data1$Infant.Mortality W = 0.97762, p-value = 0.4978
p-value is greater than 0.05, so we can assume the normality
4. Correlation Coefficient
> cor(data1$Fertility,data1$Infant.Mortality) [1] 0.416556
5. Checking for the significance
> Tes<- cor.test(swiss$Fertility,swiss$Infant.Mortality,method = "pearson") > > Tes Pearson's product-moment correlation data: swiss$Fertility and swiss$Infant.Mortality t = 3.0737, df = 45, p-value = 0.003585 alternative hypothesis: true correlation is not equal to 0 95 percent confidence interval: 0.1469699 0.6285366 sample estimates: cor 0.416556
Since the p-value is less than 0.05 (here it is 0.003585, we can conclude that Fertility and Infant Mortality are significantly correlated with a value of 0.41 and a p-value of 0.003585.
As we can see there is a positive value between fertility and infant mortality rate, the point to be noted here is correlation is just a measure of association. It will tell the degree of association along with the direct or indirect proportionality.
Here we discussed only Pearson correlation. There are other types as well such as Kendall, Spearman, and Point-Biserial.
Linearity is a property where the relationship between the variables can be graphically represented as a straight line
Normality refers to the normal distribution (Bell-Shaped curve) of the data
The media shown in this article are not owned by Analytics Vidhya and is used at the Author’s discretion.
Different Type of Correlation Metrics Used by D...
Parametric and Non-Parametric Correlation in Da...
Intuition Behind Correlation – Definition...
Beginner’s Guide to Pearson’s Corre...
11 Most Commonly Asked Questions on Correlation
What is the Difference Between Covariance and C...
Comparison of Pearson vs Spearman Correlation C...
Using Predictive Power Score to Pinpoint Non-li...
Essential Statistical Concepts for Data Cognizance
What’s the difference between Causality a...
We use cookies essential for this site to function well. Please click to help us improve its usefulness with additional cookies. Learn about our use of cookies in our Privacy Policy & Cookies Policy.
Show details
This site uses cookies to ensure that you get the best experience possible. To learn more about how we use cookies, please refer to our Privacy Policy & Cookies Policy.
It is needed for personalizing the website.
Expiry: Session
Type: HTTP
This cookie is used to prevent Cross-site request forgery (often abbreviated as CSRF) attacks of the website
Expiry: Session
Type: HTTPS
Preserves the login/logout state of users across the whole site.
Expiry: Session
Type: HTTPS
Preserves users' states across page requests.
Expiry: Session
Type: HTTPS
Google One-Tap login adds this g_state cookie to set the user status on how they interact with the One-Tap modal.
Expiry: 365 days
Type: HTTP
Used by Microsoft Clarity, to store and track visits across websites.
Expiry: 1 Year
Type: HTTP
Used by Microsoft Clarity, Persists the Clarity User ID and preferences, unique to that site, on the browser. This ensures that behavior in subsequent visits to the same site will be attributed to the same user ID.
Expiry: 1 Year
Type: HTTP
Used by Microsoft Clarity, Connects multiple page views by a user into a single Clarity session recording.
Expiry: 1 Day
Type: HTTP
Collects user data is specifically adapted to the user or device. The user can also be followed outside of the loaded website, creating a picture of the visitor's behavior.
Expiry: 2 Years
Type: HTTP
Use to measure the use of the website for internal analytics
Expiry: 1 Years
Type: HTTP
The cookie is set by embedded Microsoft Clarity scripts. The purpose of this cookie is for heatmap and session recording.
Expiry: 1 Year
Type: HTTP
Collected user data is specifically adapted to the user or device. The user can also be followed outside of the loaded website, creating a picture of the visitor's behavior.
Expiry: 2 Months
Type: HTTP
This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected includes the number of visitors, the source where they have come from, and the pages visited in an anonymous form.
Expiry: 399 Days
Type: HTTP
Used by Google Analytics, to store and count pageviews.
Expiry: 399 Days
Type: HTTP
Used by Google Analytics to collect data on the number of times a user has visited the website as well as dates for the first and most recent visit.
Expiry: 1 Day
Type: HTTP
Used to send data to Google Analytics about the visitor's device and behavior. Tracks the visitor across devices and marketing channels.
Expiry: Session
Type: PIXEL
cookies ensure that requests within a browsing session are made by the user, and not by other sites.
Expiry: 6 Months
Type: HTTP
use the cookie when customers want to make a referral from their gmail contacts; it helps auth the gmail account.
Expiry: 2 Years
Type: HTTP
This cookie is set by DoubleClick (which is owned by Google) to determine if the website visitor's browser supports cookies.
Expiry: 1 Year
Type: HTTP
this is used to send push notification using webengage.
Expiry: 1 Year
Type: HTTP
used by webenage to track auth of webenagage.
Expiry: Session
Type: HTTP
Linkedin sets this cookie to registers statistical data on users' behavior on the website for internal analytics.
Expiry: 1 Day
Type: HTTP
Use to maintain an anonymous user session by the server.
Expiry: 1 Year
Type: HTTP
Used as part of the LinkedIn Remember Me feature and is set when a user clicks Remember Me on the device to make it easier for him or her to sign in to that device.
Expiry: 1 Year
Type: HTTP
Used to store information about the time a sync with the lms_analytics cookie took place for users in the Designated Countries.
Expiry: 6 Months
Type: HTTP
Used to store information about the time a sync with the AnalyticsSyncHistory cookie took place for users in the Designated Countries.
Expiry: 6 Months
Type: HTTP
Cookie used for Sign-in with Linkedin and/or to allow for the Linkedin follow feature.
Expiry: 6 Months
Type: HTTP
allow for the Linkedin follow feature.
Expiry: 1 Year
Type: HTTP
often used to identify you, including your name, interests, and previous activity.
Expiry: 2 Months
Type: HTTP
Tracks the time that the previous page took to load
Expiry: Session
Type: HTTP
Used to remember a user's language setting to ensure LinkedIn.com displays in the language selected by the user in their settings
Expiry: Session
Type: HTTP
Tracks percent of page viewed
Expiry: Session
Type: HTTP
Indicates the start of a session for Adobe Experience Cloud
Expiry: Session
Type: HTTP
Provides page name value (URL) for use by Adobe Analytics
Expiry: Session
Type: HTTP
Used to retain and fetch time since last visit in Adobe Analytics
Expiry: 6 Months
Type: HTTP
Remembers a user's display preference/theme setting
Expiry: 6 Months
Type: HTTP
Remembers which users have updated their display / theme preferences
Expiry: 6 Months
Type: HTTP
Used by Google Adsense, to store and track conversions.
Expiry: 3 Months
Type: HTTP
Save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.
Expiry: 2 Years
Type: HTTP
Save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.
Expiry: 2 Years
Type: HTTP
Save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.
Expiry: 2 Years
Type: HTTP
Save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.
Expiry: 2 Years
Type: HTTP
Save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.
Expiry: 2 Years
Type: HTTP
Save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.
Expiry: 2 Years
Type: HTTP
These cookies are used for the purpose of targeted advertising.
Expiry: 6 Hours
Type: HTTP
These cookies are used for the purpose of targeted advertising.
Expiry: 1 Month
Type: HTTP
These cookies are used to gather website statistics, and track conversion rates.
Expiry: 1 Month
Type: HTTP
Aggregate analysis of website visitors
Expiry: 6 Months
Type: HTTP
This cookie is set by Facebook to deliver advertisements when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website.
Expiry: 4 Months
Type: HTTP
Contains a unique browser and user ID, used for targeted advertising.
Expiry: 2 Months
Type: HTTP
Used by LinkedIn to track the use of embedded services.
Expiry: 1 Year
Type: HTTP
Used by LinkedIn for tracking the use of embedded services.
Expiry: 1 Day
Type: HTTP
Used by LinkedIn to track the use of embedded services.
Expiry: 6 Months
Type: HTTP
Use these cookies to assign a unique ID when users visit a website.
Expiry: 6 Months
Type: HTTP
These cookies are set by LinkedIn for advertising purposes, including: tracking visitors so that more relevant ads can be presented, allowing users to use the 'Apply with LinkedIn' or the 'Sign-in with LinkedIn' functions, collecting information about how visitors use the site, etc.
Expiry: 6 Months
Type: HTTP
Used to make a probabilistic match of a user's identity outside the Designated Countries
Expiry: 90 Days
Type: HTTP
Used to collect information for analytics purposes.
Expiry: 1 year
Type: HTTP
Used to store session ID for a users session to ensure that clicks from adverts on the Bing search engine are verified for reporting purposes and for personalisation
Expiry: 1 Day
Type: HTTP
Cookie declaration last updated on 24/03/2023 by Analytics Vidhya.
Cookies are small text files that can be used by websites to make a user's experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies, we need your permission. This site uses different types of cookies. Some cookies are placed by third-party services that appear on our pages. Learn more about who we are, how you can contact us, and how we process personal data in our Privacy Policy.
Edit
Resend OTP
Resend OTP in 45s