# What does it mean if Pearson correlation is negative?

**correlation means**there is a positive relationship between the variables; as one variable increases or decreases, the other tends to increase or decrease with it. The

**negative correlation means**that as one of the variables increases, the other tends to decrease, and vice versa.

Similarly, it is asked, what does a negative Pearson correlation coefficient mean?

A **negative** (inverse) **correlation** occurs when the **correlation coefficient** is less than 0 and indicates that both variables move in the opposite direction. In short, any reading between 0 and -1 **means** that the two securities move in opposite directions.

Additionally, can Pearson's r be negative? **Pearson's r can** range from -1 to 1. An **r** of -1 indicates a perfect **negative** linear relationship between variables, an **r** of 0 indicates no linear relationship between variables, and an **r** of 1 indicates a perfect positive linear relationship between variables. A perfect **negative** linear relationship, **r** = -1.

Correspondingly, what does negative correlation mean?

**Negative correlation** is a relationship between two variables in which one variable increases as the other decreases, and vice versa. In statistics, a perfect **negative correlation** is represented by the value -1, a 0 indicates no **correlation**, and a +1 indicates a perfect positive **correlation**.

How do you know if a correlation is positive or negative?

A **positive correlation** coefficient means that as the value of one variable increases, the value of the other variable increases; as one decreases the other decreases. A **negative correlation** coefficient indicates that as one variable increases, the other decreases, and vice-versa.