Properties of Coefficient of Correlation
1. Coefficient of Correlation is Independent of change of origin and scale of measurements: Coefficient of Correlation is not affected by the change of origin and scale of measurement.
2. Coefficient of Correlation lies between -1 and +1: The property of r also serves as a useful check on the correctness of the calculations. If the value of r lies outside the range, then it would mean that there is some error in the calculations.
3. Zero Correlation: If two variables (say X and Y) are independent of each other, in that case, the coefficient of correlation between them will be zero.
4. Measure of Linear Relationship: The coefficient of correlation is a measure that helps in determining the linear relationship between two variables. If both the variables (say X and Y) increase or decrease together, then r will be positive. However, if one variable increases when the other variable decreases or vice-versa, then r will be negative.