• Business
  • Finance
  • Banking
  • Education
  • General
  • Law
  • Science
  • IT
  • English

Key Differences

Know the Differences & Comparisons

Difference Between Correlation and Regression

Last updated on February 26, 2021 by Surbhi S

correlation vs regression 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. Video
  5. Conclusion

Comparison Chart

Basis for ComparisonCorrelationRegression
MeaningCorrelation is a statistical measure which determines co-relationship or association of two variables.Regression describes how an independent variable is numerically related to the dependent variable.
UsageTo represent linear relationship between two variables.To fit a best line and estimate one variable on the basis of another variable.
Dependent and Independent variablesNo differenceBoth variables are different.
IndicatesCorrelation coefficient indicates the extent to which two variables move together.Regression indicates the impact of a unit change in the known variable (x) on the estimated variable (y).
ObjectiveTo find a numerical value expressing the relationship between variables.To estimate values of random variable on the basis of the values of fixed variable.

Definition 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

Definition 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 Differences 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.

Video: Correlation Vs Regression

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.

Related Differences

  • Difference Between Bailable and Non-Bailable Offence
  • Difference Between Previous Year and Assessment Year
  • Difference Between Total and Marginal Utility
  • Difference Between Direct Democracy and Indirect Democracy
  • Difference Between Ratio and Proportion

You Might Also Like:

dependent vs independent variableDifference Between Independent and Dependent Variable Difference Between ANOVA and ANCOVA onw way anova vs two way anovaDifference Between One Way and Two Way ANOVA discrete vs continuous variableDifference Between Discrete and Continuous Variable parametric-vs-non-parametric-testDifference Between Parametric and Nonparametric Test correlation vs covarianceDifference Between Covariance and Correlation

Comments

  1. kelil says

    March 28, 2017 at 1:06 pm

    Liked

    Reply
  2. 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
  3. Vijaykumar Mali says

    April 6, 2017 at 4:16 pm

    Nice Explanation, It’s very clear..
    Thanks so much…..

    Reply
  4. 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. πŸ™‚

      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

          September 18, 2017 at 2:15 pm

          An increase in price leads to the decrease in the demand for commodity, and that is why, they are negatively correlated.

          Reply
  5. 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 πŸ™‚

    Reply
  6. khushboo says

    July 25, 2017 at 12:27 pm

    This was fabulous. My doubt is completely clear.

    Reply
  7. Sandeep says

    September 14, 2017 at 11:37 pm

    Well elaborated..thanx

    Reply
  8. OsamaSomy says

    September 15, 2017 at 5:55 pm

    done…!
    Good jod.
    thanks..

    Reply
  9. Hadi says

    January 20, 2018 at 4:55 pm

    Thanks for the clear explanation.

    Reply
  10. PARTHA says

    May 12, 2018 at 12:53 pm

    IT CLEARS MY CONFUSION

    Reply
  11. Suprabha Thapaliya says

    June 11, 2018 at 7:56 am

    Very useful

    Reply
  12. Dhruba Timalsina says

    June 20, 2018 at 4:20 pm

    really appreciated

    Reply
  13. Rose says

    August 18, 2018 at 9:02 pm

    It is really great and helpful explanation thanksπŸ‘

    Reply
  14. 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. πŸ™‚

      Reply
  15. junaid ramzan says

    October 10, 2018 at 1:17 am

    worth appreciating… love you

    Reply
  16. Badang says

    November 27, 2018 at 1:26 pm

    It makes it much simpler to distinguish between correlation and regression. Thanks

    Reply
  17. Akash Maity says

    December 2, 2018 at 7:47 am

    This is too easy to understand

    Reply
  18. Rio Hemara says

    January 4, 2019 at 1:29 pm

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

    Reply
  19. Muthama Matsitsi says

    January 19, 2019 at 6:10 pm

    Well hammered.
    Its now crystal clear to me.
    Have been confusing the two throughout

    Reply
  20. Neeraj Dewangan says

    January 30, 2019 at 1:58 pm

    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
  21. Mostafa says

    March 10, 2019 at 1:29 pm

    Is it possible to use correlation for binary data?

    Reply
  22. ashok gaudel says

    May 2, 2019 at 3:12 pm

    The way it is expressed is awesome , I thank you

    Reply
  23. Auwal Ahmed says

    July 24, 2019 at 12:06 am

    This is amazing. Thank you so much!

    Reply
  24. Otu Unor says

    August 25, 2019 at 9:18 am

    Succinctly explained. Nice one!

    Reply
  25. Ngozi Ogbuju says

    August 15, 2021 at 11:16 am

    very very insightful and well explanatory

    Reply
  26. Gianfranco says

    August 30, 2021 at 1:25 pm

    Thank you, quite clear!

    Reply
  27. Richard Sithole says

    August 8, 2022 at 3:23 pm

    Short and to the point

    Reply
  28. R.Rambabu says

    January 12, 2023 at 5:03 am

    Hi, your sharing information was excellent πŸ‘Œ and i,m visiting your site regularly why because you are giving amazing information and straight forward information, Thankyou.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Top 5 Differences

  • Difference Between PERT and CPM
  • Difference Between Micro and Macro Economics
  • Difference Between Developed Countries and Developing Countries
  • Difference Between Management and Administration
  • Difference Between Qualitative and Quantitative Research

Related Differences

  • Difference Between Bailable and Non-Bailable Offence
  • Difference Between Previous Year and Assessment Year
  • Difference Between Total and Marginal Utility
  • Difference Between Direct Democracy and Indirect Democracy
  • Difference Between Ratio and Proportion



New Additions

  • Difference Between Speak and Talk
  • Difference Between Economy Class and Business Class
  • Difference Between If and Whether
  • Difference Between Hotel and Motel
  • Difference Between FIR and Chargesheet
  • Difference Between Norms and Values
  • Difference Between Society and Community
  • Difference Between Sourcing and Procurement
  • Difference Between National Income and Per Capita Income
  • Difference Between Departmental Store and Multiple Shops
fb-follow youtube follow

Copyright © 2023 · Key Differences · Contact Us · About Us · Privacy