Correlation Coefficient

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Correlation coefficient

A standardized statistical measure of the dependence of two random variables, defined as the covariance divided by the product of the standard deviations of two variables.

A measure of whether and by how much two variables are related. A correlation coefficient may be between -1 and +1. Suppose there are two variables, A and B, with -A and -B indicating their opposites. A correlation coefficient of -1 indicates that A and -B are correlated and vice versa. On the other hand, a correlation coefficient of +1 means that A and B are correlated.

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