The CORREL function
Returns the correlation coefficient of two ranges, from -1 to 1. Close to 1 means the two rise together, close to -1 that one falls as the other rises, and close to 0 no straight-line link.
Syntax
CORREL(array1, array2)- array1
- The first range of numbers.
- array2
- The second range, the same size as the first.
Examples
D1
=CORREL(1A2:A6,2B2:B6)| A | B | C | D | |
|---|---|---|---|---|
| 1 | Ad spend | Sales | 0.98644 | |
| 2 | 10 | 120 | ||
| 3 | 20 | 150 | ||
| 4 | 30 | 200 | ||
| 5 | 40 | 210 | ||
| 6 | 50 | 260 |
In plain words: How closely 1the ad spend in A2:A6 and 2the sales in B2:B6 move together.
Questions
Does a high correlation mean one thing causes the other?
No. CORREL only measures how closely two columns move together in a straight line. Both may be driven by something else, like the season.