The correlation coefficient is calculated according to the product-difference method, which is also based on the deviation between two variables and their respective average values, and the correlation degree between the two variables is reflected by multiplying the two deviations; The linear single correlation coefficient is studied emphatically.
The value of correlation coefficient r is between–1and+1. Under the condition of two-dimensional linearity, when r is 1, it represents perfect positive correlation of two variables. When r is-1, it means a complete negative correlation; The closer R is to the 0 axis, the weaker the correlation between the two groups of variables. Generally speaking, |r| above 0.66 is highly correlated. The range of |r| from 0.33 to 0.66 is weakly correlated.
According to the table below, you can check the correlation or correlation between two commodity futures.