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Measures of Correlation or Relationship

This is used to find the amount and degree of relationship or the absence of
relationship between two sets of values, characteristics or variables. This relationship or
correlation is expressed by a factor called Coefficient of Correlation. It may be expressed
as an abstract number. It is the ratio of the two values, or series of values, or variables
being compared. It can also be expressed in percent.

Correlation is a measure of degree of relationship between paired data. All

statistical research aims to establish relationship between paired variables to enable the
researcher to predict one variable in terms of the other variable.

Simple correlation is amenable to either ungrouped or grouped data, for nominal,

ordinal, interval scales of data. Usually, however, rank correlation is aptly applied to
ordinal data when the number of items or cases is rather small (less than 30).

The term correlation refers to the association which occurs between two or more
statistical series of values. The coefficient of correlation which represents correlation
values shows the extent to which two variables are related and to what extent variations
in one group of data go the variations in the other. Coefficient of correlation is a single
number that tells us to what extent two variables are related. It can vary from a value of
1.00 which means perfect positive correlation through (0), which means no correlation at
all, and -1.00 which means perfect negative correlation.
Perfect correlation refers to direct relationship between any two sets of data in that
any increase in the values of the first set of data will correspondingly generate in a
corresponding increase or decrease in the second set of data, respectively. When
correlation is negative, an inverse behavior of data is observed in that, a decrease, in
values of a first set of data will result in an increase in the second set being compared or
vice versa. When there is minimal or even zero change at one time or another between
two sets of data being correlated, there is little or no correlation at all.
The coefficient of correlation does not give directly anything like a percentage of
relationship. It cannot be concluded that a correlation value of 0.50 indicates twice the
relationship that is indicated by a correlation value of 0.25. A coefficient of relationship is
an index number, not a measurement on an interval scale. Moreover, we cannot compute
a coefficient of correlation from just two measurements on one person alone.

The following figures show the relative placement of numerical values being correlated
as located in the XY coordinate plane, where r denotes simple correlation.

Y
Y
Y

X
X
X b. r near zero: little or no
linear relationship c. Negative r: y increases
a. Positive r: y increases as
between x and y as x increases
x increases
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Y
Y

X
X
d. r = -1: perfect negative
d. r = 1: perfect positive
linear relationship
linear relationship
between x and y
between x and y

Interpretation of Correlation Coefficient Value(r)

An r from 0.00 to ± 0.20 denotes negligible correlation

An r from ± 0.21 to ± 0.40 denotes low or slight correlation
An r from ± 0.41 to ± 0.70 denotes marked or moderate correlation
An r from ± 0.71 to ± 0.90 denotes high correlation
An r from ± 0.91 to ± 0.99 denotes very high correlation
An r from ± 1.00 denotes perfect correlation

Anybody who wants to interpret the result of the coefficient of correlation should be guided by
the following reminders:

1. Relationship of two variables does not necessarily mean that one is the cause or the effect
of the other variable. It does not imply cause – effect relationship.
2. When one is computed ‘r’ is high, it does not necessarily mean that one factor is strongly
dependent on the other. This is shown on height and intelligence of people. Making a
correlation here does not make any sense at all. On the other hand, when the computed
r is small, it does not necessarily mean that one factor has no dependence on the other
factor. This may be applicable to IQ and grades in school. A low grade would suggest that
a student did not make use of his time in studying.
3. If there is a reason to believe that the two variables are related and the computed ‘r’ is
high, these two variables are really meant as associated. On the other hand, if the variable
correlated are low (though theoretically related) other factors might be responsible for
such small associations.
4. Lastly, the meaning of correlation is simple informs us that when two variables change,
there may be a strong or weak relationship taking place.
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Level of Significance

The choice of value of the significance level range from 0.01 to 0.10, depending on
the risk the researcher is willing to take for making a type of error. A 0.01 or 1% level of
significance means the researcher is giving 1% error in his decision. A 0.05 or 5% level of
significance means the researcher is giving 5% error or 95% confident of his decision to be right.
Likewise for 𝛼 = 0.05 and = 0.01 .

Pearson Product – Moment Correlation Coefficient (rxy)

This is a linear correlation necessary to find the degree of the association of two sets of
variables, X and Y. this is the most commonly used measure of correlation to determine the
relationship between two sets of variables quantitatively. To obtain the value of r from an
ungrouped data, the formula is as follows:

𝑁 ∑ 𝑋𝑌 − (∑ 𝑋) (∑ 𝑌)
𝑟𝑥𝑦 =
√[𝑁 ∑ 𝑋 2 − (∑ 𝑋)2 ][𝑁 ∑ 𝑌 2 − (∑ 𝑌)2 ]

Where:

rxy = Correlation between X and Y

X = sum of Test X

Y = sum of Test Y

XY = Sum of the product of X and Y

N = number of cases

X2 = sum of squared of X scores

Y2 = sum of squared of Y scores

The steps in computing Pearson Product – Moment Correlation Coefficient (rxy) is as follows:

Step 1. Find the sum of X and Y.

Step 2.Square all X and Y values.
Step 3.Sum X2 and Y2.
Step 4. Multiply X and Y.
Step 5. Get the sum of the product XY.
Step 6. Apply the formula.
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Example 1. Consider the values of X and Y on the descriptive research problem. “ What is the
relationship between the NSAT percentile rank and the scholastic rating of BS Physics students
in selected universities and colleges in a certain region?

Computation of Pearson Product-Moment Correlation Coefficient between NSAT Percentile

Rank and Scholastic Rating

Legend: X – NSAT Percentile Rank

Y – Scholastic Rating

Students X Y X2 Y2 XY
1 60 78 3600 6084 4680
2 73 87 5329 7569 6351
3 61 80 3721 6400 4880
4 70 86 4900 7396 6020
5 75 87 5625 7569 6525
6 79 90 6241 8100 7110
7 65 85 4225 7225 5525
8 67 84 4489 7056 5628
9 77 89 5929 7921 6853
10 80 90 6400 8100 7200
TOTAL 707 856 50,459 73,420 60,772
𝑁 ∑ 𝑋𝑌 − (∑ 𝑋) (∑ 𝑌)
𝑟𝑥𝑦 =
√[𝑁 ∑ 𝑋 2 − (∑ 𝑋)2 ][𝑁 ∑ 𝑌 2 − (∑ 𝑌)2 ]

Given:

N = 10 10 (60,772) − (707) (856)

=
√[10 (50,459) − (707)2 ][10(73,420) − (856)2 ]
XY = 60,772
(607,720) − (605,192)
X = 707 √[(504,590) − (499,849)][(734,200) − (732,736)]

2,528
Y = 856 =
√(4,741)(1,464)
2
X = 50,459
rxy = 0.96 very high positive
2 relationship
Y = 73,420
The rxy value obtained is 0.96 which denotes very high positive relationship. This means those BS
Physics students with higher NSAT percentile rank are also those students with higher scholastic
rating.