{"id":8101,"date":"2024-07-16T12:27:22","date_gmt":"2024-07-16T12:27:22","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=8101"},"modified":"2025-03-18T10:24:29","modified_gmt":"2025-03-18T10:24:29","slug":"correlation-vs-regression","status":"publish","type":"trading","link":"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/","title":{"rendered":"Correlation vs Regression: What&#8217;s The Difference?"},"content":{"rendered":"\n<p>Financial markets have become increasingly complex due to the availability of huge quantities of financial data. In order to process financial data, finance professionals have adopted various statistical tools. Statistical tools can be used to analyze market trends and the relationships between two variables and, most importantly, gain an edge over competitors. Two key tools in this regard are correlation and regression.<\/p>\n\n\n\n<p>In today\u2019s blog, we will learn about correlation and regression, their uses, types, and the differences between them.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-and-Regression.jpg\" alt=\"Correlation vs Regression\" class=\"wp-image-8114\" style=\"aspect-ratio:4\/3;object-fit:cover\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-and-Regression-1024x576.jpg 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-and-Regression-300x169.jpg 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-and-Regression-768x432.jpg 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-and-Regression-1536x864.jpg 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-and-Regression-150x84.jpg 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-and-Regression.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#What_is_Correlation\" title=\"What is Correlation?\">What is Correlation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#Types_of_Correlation\" title=\"Types of Correlation\">Types of Correlation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#Uses_of_Correlation\" title=\"Uses of Correlation\">Uses of Correlation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#What_is_Regression\" title=\"What is Regression?\">What is Regression?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#Types_of_Regression\" title=\"Types of Regression\">Types of Regression<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#Uses_of_Regression\" title=\"Uses of Regression\">Uses of Regression<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#Difference_Between_Correlation_and_Regression\" title=\"Difference Between Correlation and Regression\">Difference Between Correlation and Regression<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/correlation-vs-regression\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-what-is-correlation\"><span class=\"ez-toc-section\" id=\"What_is_Correlation\"><\/span>What is Correlation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It measures the strength and direction of a linear relationship between two variables and shows how two things change together but does not always mean one causes the other. Correlation can be used in <a href=\"https:\/\/www.pocketful.in\/stocks\">stock markets<\/a> to explain how stock prices and any other variable move relative to each other. It also finds applications in portfolio management.<\/p>\n\n\n\n<p>A strong correlation means that variables change together consistently. A weak correlation means the changes are less consistent. Furthermore, correlation does not mean causation. The fact that two things change simultaneously does not mean that one is the cause of the other. There could be a third factor affecting both variables. Correlation is computed as correlation coefficient, denoted as r, with values between -1 and +1.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-types-of-correlation\"><span class=\"ez-toc-section\" id=\"Types_of_Correlation\"><\/span>Types of Correlation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Different types of correlation are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Linear correlation:<\/strong> Two variables have a straight-line relationship between them. A scatter plot of the data would show a clear linear trend. The Karl Pearson correlation coefficient is used to measure linear correlations.<\/li>\n\n\n\n<li><strong>Nonlinear Correlations:<\/strong> The relationship between two variables is not a straight line. The data might show a curve. Spearman\u2019s rank correlation coefficient is used to measure nonlinear correlation.<\/li>\n<\/ul>\n\n\n\n<p>Interpretation of correlation values is listed below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Positive Correlation: <\/strong>In this case, two variables change together in the same direction. The value of both variables increases or decreases simultaneously. The value of r ranges between 0 and +1.<\/li>\n\n\n\n<li><strong>Negative Correlation:<\/strong> In this case, two variables change together but in opposite directions. An increase in one variable will cause a decrease in the other variable and vice-versa. The value of r ranges between 0 and -1.<\/li>\n\n\n\n<li><strong>Zero Correlation:<\/strong> In this case, the two variables move independently, i.e., a change in one variable doesn\u2019t predict any change in the other. The value of r is approximately equal to 0.<\/li>\n<\/ul>\n\n\n\n<p>The most widely used methods for calculating the coefficient of correlation are Karl Pearson\u2019s Coefficient of Correlation and Spearman\u2019s Rank Correlation Coefficient.<\/p>\n\n\n\n<p>Karl Pearson\u2019s correlation coefficient (r) is calculated as:<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"375\" height=\"86\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-1.png\" alt=\"Correlation formula \" class=\"wp-image-8104\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-1.png 375w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-1-300x69.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-1-150x34.png 150w\" sizes=\"auto, (max-width: 375px) 100vw, 375px\" \/><\/figure>\n\n\n\n<p><strong>where,<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"404\" height=\"76\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-2.png\" alt=\"Correlation formula \" class=\"wp-image-8105\" style=\"width:468px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-2.png 404w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-2-300x56.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-2-150x28.png 150w\" sizes=\"auto, (max-width: 404px) 100vw, 404px\" \/><\/figure>\n\n\n\n<p>Spearman Rank correlation coefficient (r) is calculated as:<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"275\" height=\"97\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-3.png\" alt=\"Correlation formula \" class=\"wp-image-8106\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-3.png 275w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Correlation-formula-3-150x53.png 150w\" sizes=\"auto, (max-width: 275px) 100vw, 275px\" \/><\/figure>\n\n\n\n<p><strong>Where,<\/strong><\/p>\n\n\n\n<p>d = Difference between two ranks<\/p>\n\n\n\n<p>n = Number of observations<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-uses-of-correlation\"><span class=\"ez-toc-section\" id=\"Uses_of_Correlation\"><\/span>Uses of Correlation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Correlation has a wide range of applications across various fields. Some of the key uses are stated below:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>In science, correlation analysis helps researchers examine possible connections between variables.<\/li>\n\n\n\n<li>Businesses can use correlation to make better decisions. For example, analyzing the correlation between marketing campaigns and sales figures to improve advertising strategies<\/li>\n\n\n\n<li>Psychologists also use correlation to analyze the behavioral patterns and personality traits of individuals.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-regression\"><span class=\"ez-toc-section\" id=\"What_is_Regression\"><\/span>What is Regression?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Regression Analysis is a statistical technique that helps you understand the relationship between one dependent variable (the one you want to predict) and one or more independent variables (the ones you think can affect the predicted variable).<\/p>\n\n\n\n<p>With the help of regression analysis, you create a mathematical model that analyzes the relationship between the variables. Once the model is developed, it can be used to predict the value of the dependent variable based on the value of an independent variable.<\/p>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/xirr-vs-cagr\/\">XIRR Vs CAGR: Investment Return Metrics<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-types-of-regression\"><span class=\"ez-toc-section\" id=\"Types_of_Regression\"><\/span>Types of Regression<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Linear Regression:<\/strong> It creates a model that fits a straight line through the data points to estimate the relationship between a dependent variable and one or more independent variables. It best fits situations where the relationship between variables is linear. It is further divided into two types, i.e., simple linear regression and multiple linear regression.<\/p>\n\n\n\n<p><strong>Polynomial Regression:<\/strong> It is used when the relationship between variables is nonlinear and can be represented with the help of a curve.<\/p>\n\n\n\n<p><strong>Logistic Regression:<\/strong> It is used to solve classification problems with two possible outcomes. Logistic regression estimates event probability using independent variables.<\/p>\n\n\n\n<p>Each type of regression can be represented using the equations given below:<\/p>\n\n\n\n<p><strong>Simple Linear Regression<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center\">Y = a + b X,<\/p>\n\n\n\n<p><strong>where,<\/strong><\/p>\n\n\n\n<p>Y = dependant variable<\/p>\n\n\n\n<p>X = independent variable<\/p>\n\n\n\n<p>a = y-intercept<\/p>\n\n\n\n<p>b = slope<\/p>\n\n\n\n<p><strong>Multiple Linear Regression<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"401\" height=\"51\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Multiple-Linear-Regression.png\" alt=\"Multiple Linear Regression\" class=\"wp-image-8107\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Multiple-Linear-Regression.png 401w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Multiple-Linear-Regression-300x38.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Multiple-Linear-Regression-150x19.png 150w\" sizes=\"auto, (max-width: 401px) 100vw, 401px\" \/><\/figure>\n\n\n\n<p><strong>Polynomial Regression<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"362\" height=\"56\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Polynomial-Regression.png\" alt=\"Polynomial Regression\" class=\"wp-image-8108\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Polynomial-Regression.png 362w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Polynomial-Regression-300x46.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/07\/Polynomial-Regression-150x23.png 150w\" sizes=\"auto, (max-width: 362px) 100vw, 362px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-uses-of-regression\"><span class=\"ez-toc-section\" id=\"Uses_of_Regression\"><\/span>Uses of Regression<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Businesses use regression to forecast future sales using past data and variables such as advertising budget, seasonal effects, and economic trends. This helps manage inventory and allocate resources.<\/li>\n\n\n\n<li>Medical professionals use regression analysis to identify risk factors for diseases and determine the probability of diseases.<\/li>\n\n\n\n<li>Banks and other financial institutions rely on regression analysis for several purposes, such as predicting stock prices, estimating investment risks, and creating models for loan defaults.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-difference-between-correlation-and-regression\"><span class=\"ez-toc-section\" id=\"Difference_Between_Correlation_and_Regression\"><\/span>Difference Between Correlation and Regression<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Basis<\/th><th>Correlation<\/th><th>Regression<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Feature<\/strong><\/td><td>Calculate the strength and direction of the relationship between two variables.<\/td><td>Predicts the value of a dependent variable using one or more independent variables.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Relationship<\/strong><\/td><td>Symmetric (correlation between X and Y is the same as between Y and X).<\/td><td>Asymmetric (relationship is directional, independent variable explains dependent variable).<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Types<\/strong><\/td><td>Linear, Nonlinear<\/td><td>Linear, Polynomial, Logistic<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Causation<\/strong><\/td><td>Correlation does not imply causation<\/td><td>Regression can imply causation if the model is correctly specified.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Output<\/strong><\/td><td>Correlation coefficient<\/td><td>Mathematical equation that shows the relationship between variables.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/sip-in-stocks-vs-sip-in-mutual-funds\/\">SIP in Stocks vs SIP in Mutual funds?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To summarize, choosing the right statistical tool depends on the research task. If you want to understand the relationship between two variables, correlation can be a good starting point, and if you want to build a prediction model, then regression is the way to go. They have different objectives and characteristics.<\/p>\n\n\n\n<p>In relation to stock markets, correlation can be used to find relationships between stock prices and other market variables. On the other hand, regression analysis can be performed to predict stock prices based on the set of independent variables. However, it is advised to consult a financial advisor before making any investment decision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">What is the difference between correlation and regression?<\/h3><p class=\"saswp-faq-answer-text\">Correlation measures the strength and direction of a linear relationship between two variables. In comparison, regression creates a model to forecast the value of a dependent variable depending on one or more independent variables.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What does the correlation coefficient tell us?<\/h3><p class=\"saswp-faq-answer-text\">These coefficients range from -1 to +1.1. Closer to -1 shows a strong negative correlation.2. Closer to 0 shows no linear correlation3. Closer to +1 shows a strong positive correlation<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What are residuals in regression analysis?<\/h3><p class=\"saswp-faq-answer-text\">Residuals are the differences between the observed values and the predicted values of the dependent variable. They depict how well the model fits the data.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What are the limitations of correlation and regression?<\/h3><p class=\"saswp-faq-answer-text\">Correlation can\u2019t be used to imply causation, which means it doesn\u2019t explain which variable causes the other variable to change. Regression models are based on the past data and may not be able to forecast the future outcomes properly.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">When should I use Spearman\u2019s Rank Correlation instead of Karl Pearson\u2019s Coefficient?<\/h3><p class=\"saswp-faq-answer-text\">Spearman correlation coefficient is used when the data under consideration doesn\u2019t have a normal distribution and uses nonlinear data, whereas Karl Pearson correlation coefficient is used for measuring linear correlation.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Financial markets have become increasingly complex due to the availability of huge quantities of financial data. In order to process financial data, finance professionals have adopted various statistical tools. Statistical tools can be used to analyze market trends and the relationships between two variables and, most importantly, gain an edge over competitors. Two key tools [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":8173,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[16],"class_list":["post-8101","trading","type-trading","status-publish","format-standard","has-post-thumbnail","hentry","category-trading"],"acf":{"freelancer":"Kavya Mehrotra"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Correlation and Regression: Difference, Definition, Types, Uses - Pocketful<\/title>\n<meta name=\"description\" content=\"Understand the key differences between correlation and regression. 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