CORREL formula in Excel with examples

The CORREL function in Excel calculates the correlation coefficient between two sets of data. Here’s how you can use it:

1. Syntax:

   =CORREL(array1, array2)
   

   • array1: A range of cell values for the first variable.
   • array2: A range of cell values for the second variable.

2. Interpretation of Correlation Coefficient:

   • The result of CORREL ranges from -1 to 1.
   • A value of 1 indicates a perfect positive correlation.
   • A value of -1 indicates a perfect negative correlation.
   • A value of 0 suggests no correlation.

3. Example: Suppose you have stock prices for Company A in cells A2:A100 and stock prices for Company B in cells B2:B100. To find their correlation coefficient:

   =CORREL(A2:A100, B2:B100)
   

   • The result will be between -1 and 1, indicating the relationship between the two sets of data.

Remember to adjust the cell ranges based on your specific data!