# Regression Of Financial Techniques Example For Free

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The Pearson Correlation Coefficient (r) or correlation coefficient for short is a measure of the degree of linear relationship between two variables. While in regression the emphasis is on predicting one variable from the other, in correlation the emphasis is on the degree to which a linear model may describe the relationship between two variables. In regression the interest is directional, one variable is predicted and the other is the predictor; in correlation the interest is non-directional, the relationship is the critical aspect. The coefficient of correlation can vary from positive one (indicating a perfect positive relationship), through zero (indicating the absence of a relationship), to negative one (indicating a perfect negative relationship). As a rule of thumb, correlation coefficients between .00 and .30 are considered weak, those between .30 and .70 are moderate and coefficients between .70 and 1.00 are considered high.

## Correlations

FII NSE FII Pearson Correlation 1 .313** Sig. (2-tailed) .002 N 96 96 NSE Pearson Correlation .313** 1 Sig. (2-tailed) .002 N 96 96 **. Correlation is significant at the 0.01 level (2-tailed). The above table is showing the relationship among the NSE and FII which is taken from year Jan 2003 to Dec 2010. The Pearson correlation coefficient measures the linear association between two scale variables. The correlation reported in the table is 0.313. This suggests that NSE and FII are showing a weak positive relationship i.e. with the increase in FII, NSE indices increases and vice versa.

## Correlations

FII SENSEX FII Pearson Correlation 1 .306** Sig. (2-tailed) .002 N 96 96 SENSEX Pearson Correlation .306** 1 Sig. (2-tailed) .002 N 96 96 **. Correlation is significant at the 0.01 level (2-tailed). The above table is showing the relationship among the Sensex and FII which is taken from year Jan 2003 to Dec 2010. The Pearson correlation coefficient measures the linear association between two scale variables. The correlation reported in the table is 0.306. This suggests that Sensex and FII are showing a weak positive relationship i.e. with the increase in FII, Sensex indices increases and vice versa.

## Correlations

FII CONSUMER DURABLES FII Pearson Correlation 1 .310** Sig. (2-tailed) .002 N 96 96 CONSUMER DURABLES Pearson Correlation .310** 1 Sig. (2-tailed) .002 N 96 96 **. Correlation is significant at the 0.01 level (2-tailed). The above table is showing the relationship among the Consumer Durables and FII which is taken from year Jan 2003 to Dec 2010. The Pearson correlation coefficient measures the linear association between two scale variables. The correlation reported in the table is 0.310. This suggests that Consumer Durables and FII are showing a weak positive relationship i.e. with the increase in FII, Consumer Durables indices increases and vice versa.

## Correlations

FII Capital Goods FII Pearson Correlation 1 .265** Sig.

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