Statistical

CORREL Formula

CORREL returns the Pearson correlation coefficient between two data sets, measuring the strength and direction of a linear relationship. The result ranges from -1 (perfect negative correlation) to +1 (perfect positive correlation), with 0 indicating no linear relationship. Use it to investigate whether two variables move together, like ad spend vs. revenue or temperature vs. ice cream sales.

Syntax

CORREL(array1, array2)
ParameterDescription
array1 Parameter of the CORREL function.
array2 Parameter of the CORREL function.
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Examples

Ad spend vs. revenue

Formula
=CORREL(B2:B13, C2:C13)
Returns 0.87, indicating a strong positive correlation — as monthly ad spend increases, revenue tends to increase too.

Temperature vs. heating cost

Formula
=CORREL(D2:D365, E2:E365)
Returns -0.92, a strong negative correlation — as temperature rises, heating costs fall.

No correlation check

Formula
=ABS(CORREL(A2:A100, B2:B100)) < 0.1
Returns TRUE if the two variables have essentially no linear relationship.

Common Errors

#N/A

The two arrays have different numbers of data points. They must be the same length.

#DIV/0!

One or both arrays have zero variance (all values are identical). Correlation is undefined when a variable doesn't vary.

Tips

Correlation is not causation

A high correlation means two variables move together, but does not prove one causes the other. Ice cream sales and drowning deaths are correlated because both increase in summer.

Only measures linear relationships

CORREL detects linear patterns. A perfect U-shaped or circular relationship would show a correlation near 0. Scatter plot your data first.

R-squared relationship

CORREL^2 = RSQ. If CORREL returns 0.9, then RSQ is 0.81, meaning 81% of the variance in Y is explained by X.

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