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The Corporate Finance Institute ExcelWe get the result below:The result indicates a strong positive correlation.corporatefinanceinstitute.com174
The Corporate Finance Institute ExcelThings to remember about the CORREL Function1. #N/A error – Occurs if the given arrays are of different lengths. So, if Array1and Array2 contain different numbers of data points, CORREL will returnthe #N/A error value.2. #DIV/0 error – Occurs if either of the given arrays are empty or if thestandard deviation of their values equals zero.3. If an array or reference argument contains text, logical values, or emptycells, the values are ignored; however, cells with the value zero areincluded.4. The CORREL function is exactly same as the PEARSON Function, exceptthat, in earlier versions of Excel (earlier than Excel 2003), the PEARSONfunction may exhibit some rounding errors. Hence, it is advisable to usethe CORREL function in earlier versions of Excel. In later versions of Excel,both functions should give the same results.Click here to download the sample Excel filecorporatefinanceinstitute.com175
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