Pearson Correlation Coefficient Formula is used to understand the data of economic and finance in a better way. The formula of the correlation coefficient is longer then most professional want to calculate because of which they use the data sources that already give the output.
For the calculation of Pearson coefficient mathematical calculator use which delivers the result quickly after the given of data. In the excel spreadsheet, this can also be programmed.
The result of this formula is between -1 and 1. If 2 numbers with the same value move in the same direction then the result is 1.
If 2 number with same value move in the opposite direction then the result is -1. If 2 number neither have the same value nor have the same direction the coefficient result is 0.
Financial Ratio is a forum where you will learn about all ratios definitions and formulas.