The degree or the extent of correlation between two variables is described by the value of the correlation coefficients. The degrees of correlation are: Perfect Correlation, Zero Correlation, Limited Degree of Correlation
The perfect correlation exists when two variables change in exactly equal proportion. It is often further classified into two categories.
- Perfect Positive Correlation
- Perfect Negative Correlation
Perfect positive correlation: When the proportional change in two variables is within the same direction, then it is called a perfect positive correlation. For a perfect positive correlation between two variables, the value of the correlation coefficient is equal to +1.
Perfect negative correlation: There exists a perfect negative correlation between two variables if the proportional change in the two variables is in the opposite direction. The value of the correlation coefficient for a perfect negative correlation is – 1.
Also, Read Positive and Negative Correlation