### Definition: What is Correlation Coefficient?

**Correlation Coefficient** is also known as the Pearson Correlation. It is used for the statistical measurement of dependence or association of two numbers.

Correlation is said to be positive correlation if two sets of numbers move in the same direction at the same time. If one set of number move upward and the second set move downward then the correlation is said to be a negative correlation.

To track and a better understanding of data, Correlation CoefficientÂ is applied to finance and economics.

Financial Ratiois a forum where you will learn about all ratios definitions and formulas.

## Leave a Reply