An example of correlation analysis.Yuriy BobkovIll ParkKirill UkhanovJose PrincipeBarry Ache
When it comes to financial analysis, having a solid understanding of various mathematical tools and techniques can make all the difference. One such tool that is commonly used in finance is cross-correlation. In this blog post, we will dive into the definition of cross-correlation, discover how...
A correlation is a statistical measure of the relationship between two variables. The measure is best used in variables that demonstrate a linear relationship between each other. The fit of the data can be visually represented in a scatterplot. Using a scatterplot, we can generally assess the r...
Regression captures the correlation between variables observed in a data set and quantifies whether those correlations arestatistically significant. The two basic types of regression are simple linear regression andmultiple linear regressionbut there are nonlinear regression methods for more complicated data...
The correlation coefficient is applied to finance and economics to track and better understand data. While data trends and statistical analysis often go untracked by small businesses; investment banks, financial services companies, and even the federal reserve of the United States use the correlation ...
Constructing a correlation matrix in Excel makes sense when you have three or more three variables to check the association. Analysis ToolPak add-in is available in all versions of Excel but not automatically enabled. You need to enable it through the steps mentioned in the article above. That...
Partial correlation has one continuousindependent variable(the x-value) and one continuousdependent variable(the y-value); This is the same as in regular correlation analysis. In the blood pressure example above, the independent variable is “amount of food eaten” and the dependent variable is “...
We use correlations of objective data gained by network analysis and subjective data obtained from the questionnaire survey. By using these methods, we were able to determine areas within Bratislava city specific in high or low correlation results. These results may be used in urban planning ...
In financial statement analysis, vertical analysis looks at the contributing percentage of each line item to the base figure. Vertical analysis makes it easier to understand the correlation between single items on a balance sheet and the bottom line, expressed in a percentage. Vertical analysis can...
Note: This is a simple example of partial correlation with a single continuous control variable, but you can include multiple control variables in your analysis. SPSS Statistics SPSS Statistics procedure to carry out a partial correlation The 6-step Correlate > Partial procedure below shows you how...