Question
What is perfect correlation ?
Solution
The maximum degree of correspondence or relationship goes up to 1 (one) in mathematical terms. On adding an element of the direction of correlation it spreads the maximum extent of -1 to +1 through zero. It can never be more than one. Correlation of 1 is known as perfect correlation (whether positive or negative). Between the two points of divergent perfect correlation lies 0 (zero) correlation a point of no correlation or absence of any correlation between the variables.
