

{"id":101087,"date":"2020-04-29T08:46:53","date_gmt":"2020-04-29T15:46:53","guid":{"rendered":"https:\/\/www.questionpro.com\/blog\/?p=101087"},"modified":"2025-02-07T04:17:39","modified_gmt":"2025-02-07T11:17:39","slug":"pearson-correlation-coefficient","status":"publish","type":"post","link":"https:\/\/www.questionpro.com\/blog\/pearson-correlation-coefficient\/","title":{"rendered":"Pearson Correlation Coefficient: Formula &#038; Examples"},"content":{"rendered":"\n<p>It is usual practice to quantify linear relationships through the Pearson correlation coefficient. To Indicate the strength and direction of the connection between two variables, it takes on a value between -1 and 1.<\/p>\n\n\n\n<p>It can help investors diversify. Calculations from scatter plots of historical returns between pairs of assets, such as equities-bonds, equities-commodities, bonds-real estate, etc., will help investors build risk-return portfolios.<\/p>\n\n\n\n<p>Therefore, we will learn about the Pearson correlation coefficient and know how to measure the relationship between two related variables using it.<\/p>\n\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what_is_the_pearson_correlation_coefficient?\">What is the Pearson correlation coefficient?<\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Pearson correlation coefficient or Pearson&#8217;s correlation coefficient or Pearson\u2019s r is defined in statistics as the measurement of the strength of the relationship between two variables and their association with each other.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Simply put, Pearson\u2019s correlation coefficient calculates the effect of change in one variable when the other variable changes.<\/span><\/p>\n\n\n\n<p><em><b>For example,<\/b><span style=\"font-weight: 400;\"> Up till a certain age (in most cases), a child\u2019s height will keep increasing as his\/her age increases. Of course, his\/her growth depends upon various factors like genes, location, diet, lifestyle, etc.<\/span><\/em><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">This approach is based on covariance and, thus, is the best method to measure the relationship between two variables.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what_does_the_pearson_correlation_coefficient_test_do?\">When to Use the Pearson Correlation Coefficient?<\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">The Pearson coefficient correlation has a high statistical significance. It looks at the relationship between two variables. It seeks to draw a line through the data of two variables to show their relationship. The relationship of the variables is measured with the help of the Pearson correlation coefficient calculator. This linear relationship can be positive or negative.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"992\" height=\"587\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2021\/07\/58-Pearson-Correlation.jpg\" alt=\"Pearson correlation coefficient linear relationship types\" class=\"wp-image-120712\"\/><\/figure>\n\n\n\n<p><span style=\"font-weight: 400;\"><\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">For example:&nbsp;<\/span><\/p>\n\n\n\n<ul>\n<li><b>Positive linear relationship:<\/b><span style=\"font-weight: 400;\"> In most cases, universally, the income of a person increases as his\/her age increases.<\/span><\/li>\n\n\n\n<li><b>Negative linear relationship: <\/b><span style=\"font-weight: 400;\">If the vehicle increases its speed, the time taken to travel decreases, and vice versa.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">From the example above, it is evident that the Pearson correlation coefficient, r, tries to find out two things &#8211; the strength and the direction of the relationship from the given sample sizes.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"pearson_correlation_coefficient_formula_and_calculation\">Pearson Correlation Coefficient Formula and Calculation<\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">The correlation coefficient formula finds out the relation between the variables. It returns the values between -1 and 1. Use the below Pearson Coefficient Correlation Calculator to measure the strength of two variables.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Pearson Correlation Coefficient Formula:<\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"437\" height=\"145\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/pearson-formula.png\" alt=\"pearson formula\" class=\"wp-image-101647\"\/><\/figure>\n\n\n\n<p><span style=\"font-weight: 400;\">Where:<br><\/span><span style=\"font-weight: 400;\">N <\/span> <span style=\"font-weight: 400;\">=<\/span> <span style=\"font-weight: 400;\">the number of pairs of scores<br><\/span><span style=\"font-weight: 400;\">\u03a3xy <\/span> <span style=\"font-weight: 400;\">=<\/span> <span style=\"font-weight: 400;\">the sum of the products of paired scores<br><\/span><span style=\"font-weight: 400;\">\u03a3x<\/span> <span style=\"font-weight: 400;\">=<\/span> <span style=\"font-weight: 400;\">the sum of x scores<br><\/span><span style=\"font-weight: 400;\">\u03a3y<\/span> <span style=\"font-weight: 400;\">=<\/span> <span style=\"font-weight: 400;\">the sum of y scores<br><\/span><span style=\"font-weight: 400;\">\u03a3<\/span><span style=\"font-weight: 400;\">x<\/span><span style=\"font-weight: 400;\">2<\/span> <span style=\"font-weight: 400;\">=<\/span> <span style=\"font-weight: 400;\">the sum of squared x scores<br><\/span><span style=\"font-weight: 400;\">\u03a3y<\/span><span style=\"font-weight: 400;\">2<\/span> <span style=\"font-weight: 400;\">=<\/span> <span style=\"font-weight: 400;\">the sum of squared y scores<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Calculation<\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Here is a step-by-step guide to calculating Pearson\u2019s correlation coefficient:<\/span><\/p>\n\n\n\n<p><strong>Step one:<\/strong><span style=\"font-weight: 400;\"><strong> Create a correlation coefficient table.<br><\/strong>Make a data chart, including both variables. Label these variables \u2018x\u2019 and \u2018y.\u2019 Add three additional columns &#8211; (xy), (x^2), and (y^2). Refer to this simple data chart.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"762\" height=\"146\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/pearson-table1.png\" alt=\"pearson table\" class=\"wp-image-101619\"\/><\/figure>\n\n\n\n<p><strong>Step two: Use basic multiplication to complete the table.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"763\" height=\"148\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/pearson-table2.png\" alt=\"pearson table\" class=\"wp-image-101626\"\/><\/figure>\n\n\n\n<p><strong>Step three: Add up all the columns from bottom to top.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"766\" height=\"179\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/pearson-table3.png\" alt=\"pearson table\" class=\"wp-image-101640\"\/><\/figure>\n\n\n\n<p><strong>Step four: Use the correlation formula to plug in the values.<\/strong><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">If the result is negative, there is a<a href=\"https:\/\/www.questionpro.com\/blog\/negative-correlation\/\"> negative correlation relationship<\/a><\/span> between the two variables. If the result is positive, there is a positive correlation relationship between the variables. Results can also define the strength of a linear relationship, i.e., a strong positive relationship, a strong negative relationship, a medium positive relationship, and so on.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"determining_the_strength_of_the_pearson_product-moment_correlation_coefficient\">Determining the Strength of the Pearson Product-Moment Correlation Coefficient<\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">The Pearson product-moment correlation coefficient, or simply the Pearson correlation coefficient or the Pearson coefficient correlation r, determines the strength of the linear relationship between two variables.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The stronger the association between the two variables, the closer your answer will incline toward 1 or -1. Attaining values of 1 or -1 signify that all the data points are plotted on the straight line of \u2018best fit.\u2019 It means that the change in factors of any variable does not weaken the correlation with the other variable. The closer your answer lies near 0, the more variation in the variables.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Interpret the Pearson Correlation Coefficient?<\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Below are the proposed guidelines for the Pearson coefficient correlation interpretation:<\/span><br><img loading=\"lazy\" decoding=\"async\" width=\"381\" height=\"200\" class=\"wp-image-101570 alignnone\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/Pearson1-1.png\" alt=\"Pearson correlation\"><br><span style=\"font-weight: 400;\">Note that the strength of the association of the variables depends on what you measure and the sample sizes.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">On a graph, one can notice the relationship between the variables and make assumptions before even calculating them. The scatterplots, if close to the line, show a strong relationship between the variables.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The closer the scatterplots lie next to the line, the stronger the relationship between the variables. The further they move from the line, the weaker the relationship gets. If the line is nearly parallel to the x-axis due to the scatterplots randomly placed on the graph, it\u2019s safe to assume that there is no correlation between the two variables.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What do the Terms Strength and Direction Mean?<\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">The terms \u2018strength\u2019 and \u2018direction\u2019 have statistical significance. Here\u2019s a straightforward explanation of the two words:<\/span><\/p>\n\n\n\n<ul>\n<li><b>Strength:<\/b> <span style=\"font-weight: 400;\">Strength signifies the relationship correlation between two variables. It means how consistently one variable will change due to the change in the other. Values that are close to +1 or -1 indicate a strong relationship. These values are attained if the data points fall on or are very close to the line.<\/span><br><br><span style=\"font-weight: 400;\">The further the data points move away, the weaker the strength of the linear relationship. When there is no practical way to draw a straight line because the data points are scattered, the strength of the linear relationship is the weakest.<\/span><\/li>\n\n\n\n<li><b>Direction: <span style=\"font-weight: 400;\">The direction of the line indicates a positive linear or negative linear relationship between variables. If the line has an upward slope, the variables have a positive relationship.<\/span><\/b><br><br><b><span style=\"font-weight: 400;\">This means an increase in the value of one variable will lead to an increase in the value of the other variable. A negative correlation depicts a downward slope. This means an increase in the amount of one variable leads to a decrease in the value of another variable.<\/span><\/b><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"examples_of_pearson_correlation_coefficient\">Examples of Pearson Correlation Coefficient<\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Let\u2019s look at some visual examples to help you interpret the correlation coefficient table:<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Large positive correlation<\/h3>\n\n\n\n<p><b><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"333\" class=\" wp-image-101598 alignnone\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/pearson3.png\" alt=\"pearson correlation coefficient\"><\/b><\/p>\n\n\n\n<ul>\n<li><b><span style=\"font-weight: 400;\">The above figure depicts a correlation of almost +1.<\/span><\/b><\/li>\n\n\n\n<li><b><span style=\"font-weight: 400;\">The scatterplots are nearly plotted in a straight line.<\/span><\/b><\/li>\n\n\n\n<li><b><span style=\"font-weight: 400;\">The slope is positive, which means that if one variable increases, the other variable also increases, showing a positive linear line.<\/span><\/b><\/li>\n\n\n\n<li><b><span style=\"font-weight: 400;\">This denotes that a change in one variable is directly proportional to the change in the other variable.<\/span><\/b><\/li>\n\n\n\n<li>An example of a large positive correlation would be &#8211; As children grow, so do their clothes and shoe sizes.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Medium Positive Correlation<\/h3>\n\n\n\n<p><b><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"335\" class=\"size-full wp-image-101577 alignnone\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/pearson2.png\" alt=\"pearson's r\"><\/b><\/p>\n\n\n\n<ul>\n<li><b><span style=\"font-weight: 400;\">The figure above depicts a positive correlation.<\/span><\/b><\/li>\n\n\n\n<li><b><span style=\"font-weight: 400;\">The correlation is above +0.8 but below 1+.<\/span><\/b><\/li>\n\n\n\n<li><b><span style=\"font-weight: 400;\">It shows a pretty strong linear uphill pattern.<\/span><\/b><\/li>\n\n\n\n<li>An example of a medium positive correlation would be &#8211; As the number of automobiles increases, so does the demand for the fuel variable increases.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Small Negative Correlation<\/h3>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"327\" class=\" wp-image-101605 alignnone\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/pearson4.png\" alt=\"pearson correlation coefficient\"><\/p>\n\n\n\n<ul>\n<li><span style=\"font-weight: 400;\">In the figure above, the scatter plots are not as close to the straight line compared to the earlier examples<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">It shows a negative linear correlation of approximately -0.5<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">The change in one variable is inversely proportional to the change in the other variable, as the slope is negative.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">An example of a small negative correlation would be that the more somebody eats, the less hungry they get.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Weak \/ No Correlation<\/h3>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" width=\"499\" height=\"327\" class=\" wp-image-101612 alignnone\" src=\"https:\/\/www.questionpro.com\/blog\/wp-content\/uploads\/2020\/04\/pearson5.png\" alt=\"pearson's r\"><\/p>\n\n\n\n<ul>\n<li><span style=\"font-weight: 400;\">The scatterplots are far away from the line.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">It is tough to draw a line practically.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">The correlation is approximately +0.15<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">It can\u2019t be judged that the change in one variable is directly proportional or inversely proportional to the other variable.<\/span><\/li>\n\n\n\n<li>An example of a weak\/no correlation would be that an increase in fuel prices leads to fewer people adopting pets.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">T-Test vs Pearson Correlation: What\u2019s the difference?<\/h2>\n\n\n\n<p>When analyzing data, it&#8217;s important to choose the right statistical method based on what you&#8217;re trying to achieve. A T-test and Pearson correlation might seem similar, but they serve different purposes:<\/p>\n\n\n\n<ul>\n<li><strong>T-test: <\/strong>Used to compare the means of two groups and determine if they are significantly different from each other.<\/li>\n\n\n\n<li><strong>Pearson Correlation: <\/strong>Measures the strength and direction of the relationship between two continuous variables.<\/li>\n<\/ul>\n\n\n\n<p>In simple terms, use a T-test when comparing groups and use Pearson correlation when exploring relationships between variables. Understanding the difference helps you make better data-driven decisions!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\">Final Words About Pearson\u2019s r<\/h2>\n\n\n\n<p>The Pearson correlation coefficient can be determined by collecting data on two variables of interest through a survey. You can use this to learn whether the correlation between the two variables is positive or negative and how strong it is.<\/p>\n\n\n\n<p>QuestionPro Research Suite is a suite of tools to leverage research and transform insights that can be used to collect data for Pearson correlation coefficient analysis. After <a href=\"https:\/\/www.questionpro.com\/help\/export-raw-data-excel.html\">exporting survey data<\/a> from QuestionPro and importing it into a spreadsheet or statistical application, you can conduct the correlation analysis.<\/p>\n\n\n\n<p>QuestionPro offers helpful data analysis tools such as cross-tabulation, data visualization, and statistical testing, in addition to calculating the correlation coefficient. These qualities can assist in your research and understanding your variables&#8217; interrelationships.<\/p>\n\n\n\n<p>Ready to discover the relationship between your variables and advance your data analysis? Start a QuestionPro free trial today to see how our survey software can help you determine the Pearson correlation coefficient easily. Don&#8217;t miss this chance to improve data analysis and research.<\/p>\n\n\n\n\n\t<div class=\"banner-section wf-section\" lang=\"\" >\n\t\t<div class=\"right-column-container\">\n\t\t\t<div class=\"bannerbg white\">\n\t\t\t\t<span class=\"h1-2\">Create memorable experiences based on real-time data, insights and advanced analysis.<\/span>\n\t\t\t\t<a href=\"#userliteForm\" data-toggle=\"modal\" class=\"button w-button\">Request Demo<\/a>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"userlite-modal modal fade\" id=\"userliteForm\" tabindex=\"-1\" role=\"dialog\" style=\"display: none;\">\n\t\t<div class=\"modal-dialog\" role=\"document\">\n\t\t\t<div class=\"modal-content\" role=\"document\">\n\t\t\t\t<div class=\"modal-body\">\n\t\t\t\t\t<div class=\"modal-header\">\n\t\t\t\t\t\t<button type=\"button\" class=\"close\" data-dismiss=\"modal\" aria-label=\"Close\">\n\t\t\t\t\t\t\t<i class=\"material-icons\">close<\/i>\n\t\t\t\t\t\t<\/button>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"contact-us-form-wrapper contact-box\">\n\t\t\t\t\t\t<div class=\"userlite-form-wrapper\">\n\t\t\t\t\t\t\t<iframe src=\"https:\/\/www.questionpro.com\/userlite-form-blog-en.html?product=Research&amp;referralurl=https:\/\/www.questionpro.com\/blog\/wp-json\/wp\/v2\/posts\/101087&amp;lang=en&amp;cat=market-research\" style=\"display: block;\" ><\/iframe>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"demo-form-wrapper success-message-div\" style=\"display:none\">\n\t\t\t\t\t\t\t<p class=\"success-message-para\"><\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions (FAQs)<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1738923522982\"><strong class=\"schema-faq-question\">Q1. What is a good Pearson correlation value?<\/strong> <p class=\"schema-faq-answer\">A good Pearson correlation value is close to <strong>+1 or -1<\/strong>. Here, +1 indicates a strong positive correlation, and -1 indicates a strong negative correlation.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1738923559875\"><strong class=\"schema-faq-question\">Q2. What is the rule of thumb for the correlation coefficient?<\/strong> <p class=\"schema-faq-answer\"><strong>0.90 to 1.00<\/strong> \u2192 Very strong<br\/><strong>0.70 to 0.89<\/strong> \u2192 Strong<br\/><strong>0.40 to 0.69<\/strong> \u2192 Moderate<br\/><strong>0.10 to 0.39<\/strong> \u2192 Weak<br\/><strong>0.00 to 0.09<\/strong> \u2192 No correlation<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1738923583072\"><strong class=\"schema-faq-question\">Q3. How do you know if Pearson&#8217;s correlation is significant?<\/strong> <p class=\"schema-faq-answer\">Pearson&#8217;s correlation is significant if the <strong>p-value<\/strong> is less than the chosen significance level (e.g., <strong>0.05 or 0.01<\/strong>), indicating a statistically meaningful relationship between the variables.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>It is usual practice to quantify linear relationships through the Pearson correlation coefficient. To Indicate the strength and direction of [&hellip;]<\/p>\n","protected":false},"author":65,"featured_media":101099,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[203],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pearson Correlation Coefficient: Calculation + Examples<\/title>\n<meta name=\"description\" content=\"Learn about the Pearson correlation coefficient and know how to measure the relationship between two related variables using it. 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