Formula to Calculate Partial Correlation
Consider two variables, X and Y, for which correlation has to be calculated. Consider a third variable, Z, which is related to both variables X and Y. The formula for calculating partial correlation is:
Where,
PartialCorr(X, Y).Z = Partial Correlation of X and Y variables, keeping in control of Z variable,
Corr(X, Y) = Correlation of X and Y,
Corr(Y, Z) = Correlation of Y and Z,
Corr(X, Z) = Correlation of X and Z.
How to Calculate Partial Correlation in Excel?
Partial correlation helps find the correlation between the two variables by removing the effect of the third variable. There can be situations when the relations between variables can be many. This could reduce the accuracy of correlation or could also give wrong results. Partial correlation removes the effects of other variables. Excel helps us find a partial correlation automatically by the formula. In this article, we will learn how to find partial correlations in excel.