Correlation coefficients are indicators of the strength of the linear relationship between two different variables, x and y. A linear correlation coefficient that is greater than zero indicates a ...

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While scatterplots provide a visual assessment of the relationship between variables, the correlation coefficient offers a numerical measure of the strength and direction of a linear relationship. The ...

Correlation coefficients range from -1 to +1, indicating the strength of relationships between variables. Investors use correlation coefficients for portfolio diversification to reduce risk.