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How to calculate the correlation coefficient between two variables in Excel?

We usually use correlation coefficient (a value between -1 and 1) to display how strongly two variables are related to each other. In Excel, we also can use the CORREL function to find the correlation coefficient between two variables.

Note: A correlation coefficient of +1 indicates a perfect positive correlation, which means that as variable X increases, variable Y increases and while variable X decreases, variable Y decreases.
On the other hand, a correlation coefficient of -1 indicates a perfect negative correlation. As variable X increases, variable Z decreases and as variable X decreases, variable Z increases.

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arrow blue right bubble CORREL function

For example, there are two lists of data, and now I will calculate the correlation coefficient between these two variables.
doc correlation coefficient 1

Select a blank cell that you will put the calculation result, enter this formula =CORREL(A2:A7,B2:B7), and press Enter key to get the correlation coefficient. See screenshot:
doc correlation coefficient 2

In the formula, A2:A7 and B2:B7 are the two variable lists you want to compare.

you can insert a line chart to view the correlation coefficient visually. See screenshot:
doc correlation coefficient 3

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