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timeline - correlation

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An example of how to decide if 2 time series are correlated or not.

Graphically speaking, one can estimate the correlation of 2 time series by using a scatter plot of those 2 time series (right top graph): the more the points are aligned in a straight line, the more the time series are correlated.

Computationnaly speaking, the coefficient of correlation gives an insight of the dispersion of those points: the more the coefficient of correlation is near 1 (or -1), the more the scatter points are aligned, and the more the 2 time series are correlated.

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