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Correlation
Is correlation and the correlation coefficient the same thing?
data i = 7,8,10,9,5,4 data j = 8,7,13,7,5,7 I have a modern portfolio theory book which states that the correlation coefficient = covar(i,j) / [STD(i)*STD(j)] in excel, i get the covar = 3.52778, which seems fine, and i agree with however, using the function correl(i,j), i get .673278 Using covar(i,j) / [STD(i)*STD(j)] however, i get .561065 I can duplicate the .673278 with an anova table (been a while, but i sum up X*Y, X*X, Y*Y, blah blah) So, i guess my question is, what is covar(i,j) / [STD(i)*STD(j)] ?? I'm missing something. Thanks in advance, tater10 |
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