correlation coefficient

The correlation coefficient is a statistical measure that indicates the strength and direction of a relationship between two variables. It ranges from -1 to +1: a value close to +1 means a strong positive relationship (when one variable increases, the other does too), while a value close to -1 indicates a strong negative relationship (when one variable increases, the other decreases). A value around 0 suggests little to no relationship. Understanding the correlation coefficient helps in analyzing how closely related two sets of data are, underpinning various fields like finance, science, and social studies.