Negative Correlation

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa. In statistics, a perfect negative correlation is represented by the value -1.00, while a 0.00 indicates no correlation and a +1.00 indicates a perfect positive correlation. A perfect negative correlation means that the relationship that appears to exist between two variables is negative 100% of the time. It is also possible that two variables may be negatively correlated in some, but not all, cases.

Here are a few examples of a negative correlation: The more time I spend at the mall, the less money I have in my checking account. The higher my mutual fund’s expense ratio, the lower my investment returns. The more hours I spend at the office, the less time I spend with my family.


Investment dictionary. . 2012.

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  • negative correlation — noun a correlation in which large values of one variable are associated with small values of the other; the correlation coefficient is between 0 and 1 • Syn: ↑indirect correlation • Topics: ↑statistics • Hypernyms: ↑correlation, ↑correlational… …   Useful english dictionary

  • negative correlation —   where the rise of one variable corresponds to the fall of another. It is important to note that correlation is not an indicator of causality …   Geography glossary

  • negative correlation — See correlation. American Banker Glossary …   Financial and business terms

  • negative correlation — See correlation …   Dictionary of sociology

  • corrélation — [ kɔrelasjɔ̃ ] n. f. • 1718; correlacion v. 1420; bas lat. correlatio 1 ♦ Philos. Rapport entre deux phénomènes (⇒ corrélat) qui varient en fonction l un de l autre. ⇒ correspondance, interdépendance, réciprocité. ♢ Statist. Coefficient de… …   Encyclopédie Universelle

  • Negative relationship — In statistics, a relationship between two variables is negative if the slope in a corresponding graph is negative, or what is in some contexts equivalent if the correlation between them is negative. Negative correlation is also variously called… …   Wikipedia

  • corrélation négative — neigiamoji koreliacija statusas T sritis fizika atitikmenys: angl. inverse correlation; negative correlation vok. negative Korrelation, f rus. отрицательная корреляция, f pranc. corrélation négative, f …   Fizikos terminų žodynas

  • negative Korrelation — neigiamoji koreliacija statusas T sritis fizika atitikmenys: angl. inverse correlation; negative correlation vok. negative Korrelation, f rus. отрицательная корреляция, f pranc. corrélation négative, f …   Fizikos terminų žodynas

  • correlation — The degree of relationship between two sets of data. A correlation near plus 1, called a positive correlation, indicates that changes in one set of data are closely related to changes in the other set and that the data sets change in the same… …   Financial and business terms

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