 |
Definition of 'Pearson Coefficient'
A type of correlation coefficient that represents the relationship between two variables that are measured on the same interval or ratio scale.
|
 |
Investopedia explains 'Pearson Coefficient'
Numerically, the Pearson coefficient is represented the same way as a correlation coefficient that is used in linear regression; ranging from -1 to +1. A value of +1 is the result of a perfect positive relationship between two or more variables. Conversely, a value of -1 represents a perfect negative relationship. It has been shown that the Pearson coefficient can be deceptively small when it is used with a non-linear equation.
|
|
|
