Difference Between Correlation and Regression (With Comparison Chart) - Key Differences

BUSINESS FINANCE BANKING EDUCATION GENERAL LAW
SCIENCE IT ENGLISH
Di erence Between Correlation and

Regression
Last updated on September 1, 2017 by Surbhi S
Correlation and Regression are the two analysis based on

multivariate distribution. A multivariate distribution is
described as a distribution of multiple variables. Correlation
is described as the analysis which lets us know the association
or the absence of the relationship between two variables ‘x’
and ‘y’. On the other end, Regression analysis, predicts the
value of the dependent variable based on the known value of
the independent variable, assuming that average
mathematical relationship between two or more variables.
The difference between correlation and regression is one of

the commonly asked questions in interviews. Moreover, many
people suffer ambiguity in understanding these two. So, take a
full read of this article to have a clear understanding on these
two.
Content: Correlation Vs Regression

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion
Comparison Chart
BASIS FOR
CORRELATION REGRESSION
COMPARISON
Meaning Correlation is a statistical Regression describes how

measure which an independent variable is
determines co- numerically related to the
relationship or dependent variable.
association of two
variables.
Usage To represent linear To fit a best line and

relationship between two estimate one variable on
variables. the basis of another
variable.
Dependent No difference Both variables are

and different.
Independent
variables
Indicates Correlation coefficient Regression indicates the

indicates the extent to impact of a unit change in
which two variables move the known variable (x) on
together. the estimated variable (y).
BASIS FOR
CORRELATION REGRESSION
COMPARISON
Objective To find a numerical value To estimate values of

expressing the random variable on the
relationship between basis of the values of fixed
variables. variable.
De nition of Correlation
The term correlation is a combination of two words ‘Co’
(together) and relation (connection) between two quantities.
Correlation is when, at the time of study of two variables, it is
observed that a unit change in one variable is retaliated by an
equivalent change in another variable, i.e. direct or indirect.
Or else the variables are said to be uncorrelated when the
movement in one variable does not amount to any movement
in another variable in a specific direction. It is a statistical
technique that represents the strength of the connection
between pairs of variables.
Correlation can be positive or negative. When the two

variables move in the same direction, i.e. an increase in one
variable will result in the corresponding increase in another
variable and vice versa, then the variables are considered to
be positively correlated. For instance: profit and investment.
On the contrary, when the two variables move in different

directions, in such a way that an increase in one variable will
result in a decrease in another variable and vice versa, This
situation is known as negative correlation. For instance: Price
and demand of a product.
The measures of correlation are given as under:
Karl Pearson’s Product-moment correlation coefficient

Spearman’s rank correlation coefficient
Scatter diagram
Coefficient of concurrent deviations
De nition of Regression
A statistical technique for estimating the change in the metric
dependent variable due to the change in one or more
independent variables, based on the average mathematical
relationship between two or more variables is known as
regression. It plays a significant role in many human
activities, as it is a powerful and flexible tool which used to
forecast the past, present or future events on the basis of past
or present events. For instance: On the basis of past records,
a business’s future profit can be estimated.
In a simple linear regression, there are two variables x and y,

wherein y depends on x or say influenced by x. Here y is
called as dependent, or criterion variable and x is
independent or predictor variable. The regression line of y on
x is expressed as under:
y = a + bx
where, a = constant,
b = regression coefficient,
In this equation, a and b are the two regression parameter.
Key Di erences Between Correlation and

Regression
The points given below, explains the difference between
correlation and regression in detail:
1. A statistical measure which determines the co-relationship or

association of two quantities is known as Correlation.
Regression describes how an independent variable is
numerically related to the dependent variable.
2. Correlation is used to represent the linear relationship
between two variables. On the contrary, regression is used to
fit the best line and estimate one variable on the basis of
another variable.
3. In correlation, there is no difference between dependent and

independent variables i.e. correlation between x and y is
similar to y and x. Conversely, the regression of y on x is
different from x on y.
4. Correlation indicates the strength of association between

variables. As opposed to, regression reflects the impact of the
unit change in the independent variable on the dependent
variable.
5. Correlation aims at finding a numerical value that expresses

the relationship between variables. Unlike regression whose
goal is to predict values of the random variable on the basis of
the values of fixed variable.
Conclusion
With the above discussion, it is evident, that there is a big
difference between these two mathematical concepts,
although these two are studied together. Correlation is used
when the researcher wants to know that whether the
variables under study are correlated or not, if yes then what is
the strength of their association. Pearson’s correlation
coefficient is regarded as the best measure of correlation. In
regression analysis, a functional relationship between two
variables is established so as to make future projections on
events.
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Filed Under: Education
Comments
kelil says
March 28, 2017 at 1:06 pm
Liked
Reply
Feleke Assefa says

March 28, 2017 at 1:52 pm
It is worth appreciating ! The way of expressing is very clear

and to the point ! I thank you !
Reply
Vijaykumar Mali says
April 6, 2017 at 4:16 pm
Nice Explanation, It’s very clear..

Thanks so much…..
Reply
Valence says
May 22, 2017 at 9:28 pm
It clears up my confusion. Thanks!
Reply
Surbhi S says
May 23, 2017 at 9:44 am
Thank you all the readers for appreciating the article.
Reply
MakKnight says
September 18, 2017 at 1:21 pm
Kindly elaborate how price and demand are negatively

correlated. I thought a increase in demand triggers an
increase in price…
Reply
Surbhi S says
An increase in price leads to the decrease in the

demand for commodity, and that is why, they are
negatively correlated.
Reply
Tim John Joseph says

June 7, 2017 at 12:55 pm
Great explanation, especially the comparison table. Was able

to understand the differences very clearly. Thankyou
Reply
khushboo says
July 25, 2017 at 12:27 pm
This was fabulous. My doubt is completely clear.
Reply
Sandeep says
Well elaborated..thanx
Reply
OsamaSomy says
done…!
Good jod.
thanks..
Reply
Hadi says
January 20, 2018 at 4:55 pm
Thanks for the clear explanation.
Reply
PARTHA says
May 12, 2018 at 12:53 pm
IT CLEARS MY CONFUSION
Reply
Suprabha Thapaliya says

June 11, 2018 at 7:56 am
Very useful
Reply
Dhruba Timalsina says

June 20, 2018 at 4:20 pm
really appreciated
Reply
Rose says
August 18, 2018 at 9:02 pm
It is really great and helpful explanation thanks
Reply
Chhavi Prakash Mahto says

September 19, 2018 at 9:43 am
Very useful and knowledgeable article.
Reply
Surbhi S says
September 19, 2018 at 9:59 am
Thanks for appreciating, your views mean a lot to us, keep

visiting.
Reply
junaid ramzan says
October 10, 2018 at 1:17 am
worth appreciating… love you
Reply
Badang says
November 27, 2018 at 1:26 pm
It makes it much simpler to distinguish between correlation

and regression. Thanks
Reply
Akash Maity says

December 2, 2018 at 7:47 am
This is too easy to understand
Reply
Rio Hemara says

Thank you, It is very useful. very simple to understand.
Reply
Muthama Matsitsi says
Well hammered.
Its now crystal clear to me.
Have been confusing the two throughout
Reply
Neeraj Dewangan says

Hi Surbhi,
Thanks for explaining the difference thoroughly with proper

points. In statistics, it’s very important to understand each and
every concept clearly so as to work properly. I am studying R
and faced the difficulty to understand. I am glad that ur this
piece of write up helped me to understand the concept.
Thanks again!!
You should write more often in statistics also, and keep up the
good work.
Reply
Mostafa says
March 10, 2019 at 1:29 pm
Is it possible to use correlation for binary data?

Reply
ashok gaudel says

May 2, 2019 at 3:12 pm
The way it is expressed is awesome , I thank you
Reply
Auwal Ahmed says

July 24, 2019 at 12:06 am
This is amazing. Thank you so much!
Reply
Otu Unor says

August 25, 2019 at 9:18 am
Succinctly explained. Nice one!
Reply
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BUSINESS FINANCE BANKING EDUCATION GENERAL LAW

Di erence Between Correlation and

Correlation and Regression are the two analysis based on

The difference between correlation and regression is one of

Content: Correlation Vs Regression

Meaning Correlation is a statistical Regression describes how

Usage To represent linear To ﬁt a best line and

Dependent No difference Both variables are

Indicates Correlation coeﬃcient Regression indicates the

Objective To ﬁnd a numerical value To estimate values of

Correlation can be positive or negative. When the two

On the contrary, when the two variables move in different

The measures of correlation are given as under:

Karl Pearson’s Product-moment correlation coeﬃcient

In a simple linear regression, there are two variables x and y,

Key Di erences Between Correlation and

1. A statistical measure which determines the co-relationship or

3. In correlation, there is no difference between dependent and

4. Correlation indicates the strength of association between

5. Correlation aims at ﬁnding a numerical value that expresses

You Might Also Like:

Difference Between One Difference Between Difference Between T-

Filed Under: Education

Feleke Assefa says

It is worth appreciating ! The way of expressing is very clear

Nice Explanation, It’s very clear..

It clears up my confusion. Thanks!

Thank you all the readers for appreciating the article.

Kindly elaborate how price and demand are negatively

An increase in price leads to the decrease in the

Tim John Joseph says

Great explanation, especially the comparison table. Was able

This was fabulous. My doubt is completely clear.

Thanks for the clear explanation.

Suprabha Thapaliya says

Dhruba Timalsina says

It is really great and helpful explanation thanks

Chhavi Prakash Mahto says

Very useful and knowledgeable article.

Thanks for appreciating, your views mean a lot to us, keep

worth appreciating… love you

It makes it much simpler to distinguish between correlation

Akash Maity says

This is too easy to understand

Rio Hemara says

Thank you, It is very useful. very simple to understand.

Neeraj Dewangan says

Thanks for explaining the difference thoroughly with proper

Is it possible to use correlation for binary data?

ashok gaudel says

The way it is expressed is awesome , I thank you

Auwal Ahmed says

This is amazing. Thank you so much!

Otu Unor says

Succinctly explained. Nice one!

I'm not a robot

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