Correlation Analysis Wizard: Analysis Type

The Correlation Analysis Wizard allows you to search for correlation between the data in one field and the previous or future values of one or more other fields.

Correlation Analysis is useful for searching for direct relationships between values of one data field and previous values of another field. Specifically, correlation analysis determines if the two sets of values move in the same direction by the similar amounts. If a strong relationship is found, the previous values of the second field may be useful for predicting new values of the first.

For example, if there is a high correlation between the closing price of ABC and the closing price of DEF on the previous day, then the changes in the price of DEF may make an effective input for predicting the price of ABC.

Selecting What Type of Correlation Analysis to Perform

Correlation analysis can be used to detect either of the following conditions.

·      Determine if other fields may be good inputs for predicting this field.

This type of analysis compares the values of this field to previous values of other fields. If a high correlation is detected between this field and the previous value of another field, the other field may make a good input for predicting this field.

·      Determine if this field may be a good input for predicting other fields.

This type of analysis compares the values of this field to future values of other fields. If a high correlation is detected between this field and the future value of another field, this field may make a good input for predicting the other field.

What Do I Do Next?

When you have selected the type of correlation analysis you would like to perform, press the Next button to continue to the Analysis Fields page. If you would like to exit the Wizard without performing any analysis, press the Cancel button.

How Did I Get Here?

The Correlation Analysis Wizard appears when you press the Correlation Analysis button on the Modify Field Dialog: Overview page.