In this post, I show how to interpret regression models that have significant independent variables but a low R-squared. To do this, I’ll compare regression models with low and high R-squared values so you can really grasp the similarities and differences and what it all means. Related pos...
The concept of negative correlation is important for investors or analysts who are considering adding new investments to their portfolio. When market uncertainty is high, a common consideration is re-balancing portfolios by replacing some securities that have a positive correlation with those that have ...
elevation would remain constant. Contour lines show elevation and the shape of the terrain. They're useful because they illustrate the shape of the land surface — its topography — on the map. Here's a cool way to understand how to interpret contour lines: Take an object like a ball or...
How to interpret the results of correlation coefficient in Excel Interpreting the results of the correlation coefficient in Excel is relatively simple. As mentioned earlier, the correlation coefficient ranges from -1 to 1, with positive values indicating a positive correlation, negative values indicating...
You can use your scatterplot to understand the direction of your relationship. Your scatterplot can tell you if you have a positive, negative or zero correlation. Positive correlation in a scatterplot If the line that you imagine in your graph slopes upward from zero, you can conclud...
What are some caveats for using correlation coefficients to interpret the relationship of two variables? For the data given: What is the correlation coefficient and interpret its meaning? If we determine that the correlation between X and Y is statistically signific...
How to Interpret Correlation Analysis Correlation coefficients range from 0 to 1, where the higher the coefficient means the stronger correlation. When the value is greater than 0.7, there is considered to be a strong correlation between the two variables. ...
How to Interpret the Output Result Magnitude:The absolute value of the correlation coefficient indicates the strength of the relationship. The closer the coefficient is to -1 or +1, the stronger the relationship. Values close to 0 suggest a weak or no relationship. ...
A positive correlation would be the opposite type of relationship to a negative correlation. In other words, X and Y would be positively correlated if they both rise together or fall together. Note that correlations can and often do change over time, and the fact that X and Y are positivel...
How to Interpret the Data When speculators move from net short to net long, look for the price of the euro futures, and by extension the EUR/USD, to appreciate. When speculators move from net long to net short, look for the price of the futures and related currency pairs to depreciate....