As the temperature increases, the sales of winter coats decreases.Ĭorrelation is used in finance to study the relationships between different assets. Correlation is used in statistics and other fields to measure the relationships between variables.įor example, marketers would say there is an observable negative correlation between the sales of winter coats and a rise in temperatures. As one variable increases, the other variable decreases, and vice versa.
Negative correlation occurs when two variables move in opposite directions to each other.
