Correlation

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In statistics, correlation is a type of statistical relationship between two random variables or bivariate data. It usually refers to the extent to which a pair of quantities are linearly related. More generally, an arbitrary relationship between variables is called an association, meaning the degree to which the variability in one can be accounted for by the other. The presence of a correlation is not sufficient to infer the presence of a causal relationship, and this is often stated as "correlation does not imply causation". Furthermore, the concept of correlation is not the same as dependence: if two variables are independent, then they are uncorrelated, but the opposite is not necessarily true – even if two variables are uncorrelated, they might be dependent on each other. Correlations are useful because they can indicate a predictive relationship that can be exploited in practice. For example, an electrical utility may produce less power on a mild day based on the correlation between...

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