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Glossary

Correlation

A statistical term that measures the degree of the relationship between two variables. A correlation has two components, magnitude and direction. Magnitude is a measure of strength and ranges from 0, no correlation, to 1, perfect correlation. Direction determines whether a correlation is positive or negative. A positive correlation means that as one variable, X, increases so does another variable, Y. A negative correlation means that as one variable, X, decreases so does another variable, Y. An inverse correlation means that as one variable, X, increases the other variable, Y, decreases and vice versa. For example, if variables X and Y have a correlation of 0.7 this means they have a strong, positive relationship. Correlation does not imply a causal relationship between variables.