Sample Correlation Coefficient R Formula
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Sample Correlation Coefficient R Formula. The sample correlation coefficient (r) is a measure of the closeness of association of the points in a scatter plot to a linear regression . Learn more about this statistical measurement used to represent movement between a security and its benchmark.
The correlation coefficient is a measure of how well a line can describe the relationship between x and y.
R is always going to be greater than . When r (the correlation coefficient) is near . The sign of the linear correlation coefficient indicates the direction of the linear relationship between x and y. The pearson correlation coefficient is used to measure the strength of a linear association between two variables, where the value r = 1 means a perfect .
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