Correlation measures the strength and direction of the linear relationship between two variables. The
Pearson correlation coefficient r ranges from negative one (perfect negative linear relationship) to positive one (perfect positive linear relationship). A value of zero indicates no linear relationship (though a nonlinear relationship may still exist). The square of r represents the proportion of variance in one variable explained by the other.
Always plot your data before computing correlations — the famous Anscombe Anscombe quartet (
always visualize) quartet consists of four datasets with identical means, variances, and correlations but dramatically different patterns when plotted. Visualizations (scatter plots, box plots, histograms) reveal patterns that summary statistics cannot.