Correlation matrix in excel is a way of summarizing the correlation data showing the relationship between two variables and each table in the correlation matrix shows us the relationship between two variables, to make a correlation matrix we can do it from the data analysis tab and from the correlation section. A correlation matrix is simply a table which displays the correlation coefficients for different variables. The matrix depicts the correlation between all the possible pairs of values in a table. It is a powerful tool to summarize a large dataset and to identify and visualize patterns in the given data.

How to calculate the correlation coefficient between two variables in Excel?

We usually use correlation coefficient (a value between -1 and 1) to display how strongly two variables are related to each other. In Excel, we also can use the CORREL function to find the correlation coefficient between two variables.

Note: A correlation coefficient of +1 indicates a perfect positive correlation, which means that as variable X increases, variable Y increases and while variable X decreases, variable Y decreases.
On the other hand, a correlation coefficient of -1 indicates a perfect negative correlation. As variable X increases, variable Z decreases and as variable X decreases, variable Z increases.

Method A Directly use CORREL function

For example, there are two lists of data, and now I will calculate the correlation coefficient between these two variables.

Select a blank cell that you will put the calculation result, enter this formula =CORREL(A2:A7,B2:B7), and press Enter key to get the correlation coefficient. See screenshot:

In the formula, A2:A7 and B2:B7 are the two variable lists you want to compare.

you can insert a line chart to view the correlation coefficient visually. See screenshot:

Method B Apply Data Analysis and output the analysis

With the Analysis Toolpak add-in in Excel, you can quickly generate correlation coefficients between two variables, please do as below:

1. If you have add the Data Analysis add-in to the Data group, please jump to step 3. Click File > Options, then in the Excel Options window, click Add-Ins from the left pane, and go to click Go button next to Excel Add-ins drop-down list.

2. In the Add-Ins dialog, check Analysis ToolPak, click OK to add this add-in to Data tab group.

3. Then click Data > Data Analysis, and in the Data Analysis dialog, select Correlation, then click OK.

4. Then the Correlation dialog, do as below operation:

1) Select the data range;

Steps to install anaconda for mac. 2) Check Columns or Rows option based on your data;

3) Check Labelsin first row if you have labels in the data;

4) Check one option as you need in Output options secton.

5. Click OK. And the analysis result has been displayed in the range you specified.

Related Articles

• Calculate percentage change or difference between two numbers in Excel
  This article is talking about calculating percentage change or difference between two numbers in Excel.

• Calculate or Assign Letter Grade In Excel
  To assign letter grade for each student based on their scores may be a common task for a teacher. For example, I have a grading scale defined where the score 0-59 = F, 60-69 = D, 70-79 = C, 80-89 = B, and 90-100 = A, see more.

• Calculate discount rate or price in Excel
  When Christmas is coming, there must be many sale promotions in shopping malls. But if the different kinds of items have different discounts, how can you calculate the discount rates or prices of the different items?

• Count the number of days / workdays / weekends between two dates in Excel
  May be, sometimes, you just only want to calculate the workdays between two dates, and sometime, you need to count the weekend days only between the two dates.

• Reuse: Quickly insert complex formulas, charts and anything that you have used before; Encrypt Cells with password; Create Mailing List and send emails..
• Super Formula Bar (easily edit multiple lines of text and formula); Reading Layout (easily read and edit large numbers of cells); Paste to Filtered Range..
• Merge Cells/Rows/Columns without losing Data; Split Cells Content; Combine Duplicate Rows/Columns.. Prevent Duplicate Cells; Compare Ranges..
• Select Duplicate or Unique Rows; Select Blank Rows (all cells are empty); Super Find and Fuzzy Find in Many Workbooks; Random Select..
• Exact Copy Multiple Cells without changing formula reference; Auto Create References to Multiple Sheets; Insert Bullets, Check Boxes and more..
• Extract Text, Add Text, Remove by Position, Remove Space; Create and Print Paging Subtotals; Convert Between Cells Content and Comments..
• Super Filter (save and apply filter schemes to other sheets); Advanced Sort by month/week/day, frequency and more; Special Filter by bold, italic..
• Combine Workbooks and WorkSheets; Merge Tables based on key columns; Split Data into Multiple Sheets; Batch Convert xls, xlsx and PDF..
• More than 300 powerful features. Supports Office/Excel 2007-2019 and 365. Supports all languages. Easy deploying in your enterprise or organization. Full features 30-day free trial. 60-day money back guarantee.

• Enable tabbed editing and reading in Word, Excel, PowerPoint, Publisher, Access, Visio and Project.
• Open and create multiple documents in new tabs of the same window, rather than in new windows.
• Increases your productivity by 50%, and reduces hundreds of mouse clicks for you every day!

• To post as a guest, your comment is unpublished.
  Well then what about the sardines?!?