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Correlation values, r, are in the closed interval [-1, 1]. The indicator rounds the values to 2 decimal places hence you may see values of "-0.00" e.g. the value could be -0.0011233215125.
The motivation for this is 2 fold:
QuoteDislikedI get something like "-0.00" on some of the pairs, does it mean that the correlation is too small to calculate?
Correlation values, r, are in the closed interval [-1, 1]. The indicator rounds the values to 2 decimal places hence you may see values of "-0.00" e.g. the value could be -0.0011233215125.
The motivation for this is 2 fold:
- Cosmetics/readability: Its needs to be quick to interpret.
- Its a noisy measure - reporting anything more decimal places doesn't add any value to your analysis e.g. r = 0.80125 rounded to 0.80 should not alter you interpretation.
- In slightly more depth, a correlation can be considered as a percentages (+/-1.0 = +/-100%, 0.1 = 10%, 0.01 = 1% and 0.001 = 0.1% etcetera). So if r=0.001 and the indicator displays r=0.00 the loss of precision should not alter your interpretation that the a correlation is not present in the data.
Hope that helps.