Positive Correlation

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Dictionary Says

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 Says

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.

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Related Definitions

  1. Negative Correlation

    A relationship ...
  2. Autocorrelation

    A mathematical ...
  3. Correlation Coefficient

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  4. Covariance

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  5. Standard Deviation

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  6. Statistically Significant

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  7. Correlation

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  8. Spurious Correlation

    A false ...
  9. Cross-Correlation

    A statistical ...
  10. Inverse Correlation

    A contrary ...

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