The sample correlation coefficient, often denoted as “r,” is a measure of the strength and direction of a linear relationship between two variables. This coefficient ranges from -1 to 1, with -1 ...

Understanding the relationship between two variables is a key aspect of statistical analysis. One commonly used measure for this is the sample correlation coefficient, commonly represented by ‘r’.

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