what is positive correlation 
a positive correlation is a relationship between two variables that move in tandem that is in the same direction a positive correlation exists when one variable decreases as the other variable decreases or one variable increases while the other increases because these two different variables move in the same direction they theoretically are influenced by the same external forces 1investopedia ellen lindnerunderstanding positive correlationa perfectly positive correlation means that 100 of the time the variables in question move together by the exact same percentage and direction a positive correlation can be seen between the demand for a product and the product s associated price in situations where the available supply stays the same the price will rise if demand increases additionally gains or losses in certain markets may lead to similar movements in associated markets as the price of fuel rises the prices of airline tickets also rise since airplanes require fuel to operate an increase in this cost is often passed to the consumer leading to a positive correlation between fuel prices and airline ticket prices a positive correlation does not guarantee growth or benefit instead it is used to denote any two or more variables that move in the same direction together so when one increases so does the other the existence of a correlation does not necessarily indicate a causal relationship between variables correlation is a form of dependency where a shift in one variable means a change is likely in the other or that certain known variables produce specific results a general example can be seen within complementary product demand if the demand for vehicles rises so will the demand for vehicular related products and services such as tires an increase in one area has an effect on complementary industries in some situations positive psychological responses can cause positive changes within an area this can be demonstrated within the financial markets in cases where general positive news about a company leads to a higher stock price 2correlation among variables does not necessarily imply causation 4measuring positive correlationin statistics a perfect positive correlation is represented by the correlation coefficient value 1 0 while 0 indicates no correlation and 1 0 indicates a perfect inverse negative correlation 3positive correlation may also be easily identified by graphically depicting a data set using a scatterplot each point on a scatterplot represents one sample item at the intersection of the x axis variable and y axis variable a positive correlation on a scatterplot is evidenced by an upward trending series of points that show that as the x axis variable increases so does the y axis variable 5