Can simple correlation coefficient measure any type of relationsh… - Vidyadip

Question

Can simple correlation coefficient measure any type of relationship?

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Answer

No, the simple correlation coefficient cannot measure any type of relationship. The simple correlation coefficient can measure only the direction and magnitude of linear relationship between the two variables. It cannot measure non-linear relationship like quadratic, trigonometric, cubic, etc. Therefore, in such cases, the purview of simple correlation coefficient falls short.
For example: The simple correlation coefficient may depict that $X$ and $Y$ are not correlated in the equation $X = Y^2$, hence it may be concluded that both the variables are independent, but such conclusion may be wrong.

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