In the above example, Apple and the S&P 500 have a correlation coefficient of 0.73817, which indicates a strong relationship between the two over 90 days of data.

Correlation coefficients are used in science and finance to assess the degree of association between two variables, factors, or data sets. For example, as high oil prices are favorable for crude ...

Thus, if we calculate the correlation coefficient including this outlier, it would suggest a weaker correlation between the stock and the S&P 500 than actually exists on most trading days.

The correlation function will ask for two rows of data from two identical timeframes. Input, click ok and voila—correlation coefficient. The correlation coefficient is a number between 1 and -1.

There are two key assumptions for the Spearman’s rank correlation coefficient: The data should be on the ordinal or continuous scale. An example of an ordinal variable is a survey question that ranks ...

Also, tools robust to noise (for example, assessed by multiple rarefactions on experimental data—see Supplementary Figures 2 and 3)—are likely to perform better on real-world data sets.