DEFINITION of 'Positive Correlation '
A relationship between two variables in which both variables move in tandem. A positive correlation exists when as one variable decreases, the other variable also decreases and vice versa. In statistics, a perfect positive correlation is represented by the value +1.00, while a 0.00 indicates no correlation and a 1.00 indicates a perfect negative correlation.
INVESTOPEDIA EXPLAINS 'Positive Correlation '
Here are a few simple examples of a positive correlation: The more money I save, the more financially secure I feel. The longer I invest, the more compound interest I earn. The less time I spend marketing my business, the fewer new clients I acquire. The more years of education I complete, the higher my earning potential.
A perfect positive correlation means that 100% of the time, the relationship that appears to exist between two variables is positive. It is also possible for two variables to be positively correlated in some, but not all, cases.
VIDEO

Inverse Correlation
A contrary relationship between two variables such that they ... 
Negative Correlation
A relationship between two variables in which one variable increases ... 
Standard Deviation
1. A measure of the dispersion of a set of data from its mean. ... 
CrossCorrelation
A statistical measure timing the movements and proximity of alignment ... 
Covariance
A measure of the degree to which returns on two risky assets ... 
Correlation
In the world of finance, a statistical measure of how two securities ...

What are some examples of positive correlation in economics?
Positive correlation exists when two variables move in the same direction. A basic example of positive correlation is height ... Read Full Answer >> 
What is the difference between positive correlation and inverse correlation?
In the field of statistics, positive correlation describes the relationship between two variables which change together, ... Read Full Answer >> 
How do I find positive correlation in the stock market?
Positive correlation refers to a statistical relationship in which two variables generally move in the same direction together. ... Read Full Answer >> 
What does it mean if the correlation coefficient is positive, negative, or zero?
The correlation coefficient measures the robustness of the relationship between two variables. Pearson's correlation coefficient ... Read Full Answer >> 
Are oil prices and interest rates correlated?
Yes. No. Maybe. Definitely. There's no easy answer to this question. While many theories abound, the reality is that oil ... Read Full Answer >> 
What is the correlation between American stock prices and the value of the U.S. dollar?
The correlation between any two variables (or sets of variables) summarizes a relationship, whether or not there is any realworld ... Read Full Answer >> 
Is there a correlation between inflation and house prices?
There is a correlation between inflation and house prices  in fact there are correlations between inflation and any good ... Read Full Answer >> 
What is the relationship between oil prices and inflation?
The price of oil and inflation are often seen as being connected in a cause and effect relationship. As oil prices move up ... Read Full Answer >>

Investing
Correlation
In the world of finance, correlation is a statistical measure of how two securities move in relation to each other. 
Forex Education
Using Currency Correlations To Your Advantage
Knowing the relationships between pairs can help control risk exposure and maximize profits. 
Fundamental Analysis
What is Quantitative Analysis?
Quantitative analysis refers to the use of mathematical computations to analyze markets and investments. 
Fundamental Analysis
Understanding the Simple Random Sample
A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen. 
Economics
What is Systematic Sampling?
Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample. 
Fundamental Analysis
Explaining Expected Return
The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome. 
Fundamental Analysis
Explaining the Geometric Mean
The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio. 
Investing
The Labor Market Recovery’s Missing Ingredient
Job creation is running at the fastest pace since the 90s, and there is some evidence that wage growth is finally starting to accelerate, albeit modestly. 
Trading Strategies
Best Undergraduate Degrees For Day Traders
We look at some popular undergrad majors for those wanting to begin a career in the exciting world of fastpaced trading. 
Fundamental Analysis
Explaining Standard Error
Standard error is a statistical term that measures the accuracy with which a sample represents a population.