Pearson S Correlation Coefficient Formula. The correlation coefficient. The pearson correlation coefficient is denoted by the letter r.
σy the sum of y scores. N the number of pairs of scores. σxy the sum of the products of paired scores.
The pearson correlation coefficient which used to be called the pearson product moment correlation coefficient was established by karl pearson in the early 1900s.
The pearson correlation coefficient is symmetric. Large r frac n sum xy sum x sum y sqrt n sum x 2 sum x 2 n sum y 2 sum y 2 where r pearson correlation coefficient x values in the first set of data y values in the second set of data. σ x 2 the sum of squared x scores. N number of the pairs of the stock.
