Positive Correlation
Barron's Business Dictionary:
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Positive Correlation
Direct association between two variables.
As one variable becomes large, the other also becomes large, and vice versa. Positive correlation is represented by correlation coefficients greater than 0.
See also negative correlation.
As one variable becomes large, the other also becomes large, and vice versa. Positive correlation is represented by correlation coefficients greater than 0.
See also negative correlation.
| Positive Carry, Position, Portrait | |
| Positive Leverage, Positive Yield Curve, Possession |
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Positive Correlation
Investopedia Financial Dictionary:
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Positive Correlation
A relationship between two variables in which both variables move in tandem. A positive correlation exists when as one variable decreases, the other variable also decreases and vice versa. In statistics, a perfect positive correlation is represented by the value +1.00, while a 0.00 indicates no correlation and a -1.00 indicates a perfect negative correlation.
Investopedia Says:
Here are a few simple examples of a positive correlation: The more money I save, the more financially secure I feel. The longer I invest, the more compound interest I earn. The less time I spend marketing my business, the fewer new clients I acquire. The more years of education I complete, the higher my earning potential.
A perfect positive correlation means that 100% of the time, the relationship that appears to exist between two variables is positive. It is aslo possible for two variables to be positively correlated in some, but not all, cases.
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