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.
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Inverse Correlation
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Negative Correlation
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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 >>

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