Correlation Matrix

FreightWaves Customer SuccessCorrelation Matrix

What is it?

A grid that shows how strong a relationship is between multiple data sets. 

Who is interested?

Anyone looking to measure the strength of the relationship between two variables. 

What does it tell me?

The matrix tells you how well two indexes move together on a scale of -1 to 1. The closer the value is to -1 or 1 the tighter the correlation or relationship between the two variables. 

A value of 1 indicates a perfect correlation between two variables. I.e. as one value moves up so does the other. 

A value of -1 means the two values are perfectly divergent. I.e. as one value moves down the other moves up.  

A value of 0 indicates no relationship is present.