3 ms·
The linked Google sheets computes the correlation between the _first difference of_ series 1 and the _first difference_ of series 2, and not the correlation bet
by addcommitpush 3y ago
The linked Google sheets computes the correlation between the _first difference of_ series 1 and the _first difference_ of series 2, and not the correlation between the series 1 and the series 2.
Correlation is indeed misunderstood by the author.
> In the chart above, Series 1 and Series 2 are both increasing every day together in the same direction, yet they are perfectly negatively correlated.
"Perfectly negatively correlated" as in the correlation is ... 0.982306684.