NEGATIVE CORRELATION Meaning and
Definition
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Negative correlation is a statistical term used to describe the relationship between two variables when their values change in opposite directions. It is a measure of association that indicates when one variable increases, the other tends to decrease, and vice versa. This means that as the value of one variable increases, there is a tendency for the value of the other variable to decrease, and vice versa.
In a negative correlation, the correlation coefficient, which ranges from -1 to 1, is close to -1. A correlation coefficient of -1 indicates a perfect negative correlation, meaning that the two variables are perfectly inversely related. A value of 0 indicates no correlation, while a positive correlation indicates that the variables move in the same direction.
Negative correlation is important in various fields such as economics, finance, and social sciences. For example, in finance, it is commonly observed that as stock prices increase, bond prices tend to decrease, and vice versa. This negative correlation between stocks and bonds allows investors to diversify their portfolios, reducing overall risk.
Understanding the concept of negative correlation helps in predicting the behavior of variables and making informed decisions. It allows researchers and analysts to determine the extent of association between variables and provides insights into how changes in one variable may affect another. By recognizing negative correlation, individuals can plan and strategize accordingly in order to mitigate any potential risks.
Common Misspellings for NEGATIVE CORRELATION
- begative correlation
- megative correlation
- jegative correlation
- hegative correlation
- nwgative correlation
- nsgative correlation
- ndgative correlation
- nrgative correlation
- n4gative correlation
- n3gative correlation
- nefative correlation
- nevative correlation
- nebative correlation
- nehative correlation
- neyative correlation
- netative correlation
- negztive correlation
- negstive correlation
- negwtive correlation
Etymology of NEGATIVE CORRELATION
The word "negative" comes from the Latin word "negativus", which is the past participle of the verb "negare", meaning "to deny". In this context, it suggests the absence or opposite of something.
The term "correlation" has its roots in the Latin word "correlatio", which is a combination of the prefix "co-" (meaning "together") and the noun "relatio" (meaning "relation"). It essentially refers to the relationship or connection between two or more things.
Therefore, "negative correlation" combines these two terms to describe a statistical relationship between two variables that move in opposite directions: as one variable increases, the other variable decreases.
Similar spelling words for NEGATIVE CORRELATION
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