Definition: Correlation coefficient

OECD - Business tendency surveys

Given a pair of related variables (X and Y), the correlation coefficient (r)measures the degree to which they co-vary in a linear fashion. r will be positive when the two variables move in the same direction and negative when the two variables move in opposite directions. r takes values from -1 to +1. Ignoring the sign, the larger the value of r the greater the strength of the association between the two variables.
Source:
Organization for Economic Cooperation and Development (OECD), "Business Tendency Surveys - A Handbook", OECD, Paris, 2003
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