Correlation has a dictionary meaning (two things are related to one another) and a math meaning (having to do with a mathematical relationship between two variable being well-approximated by a line). It is important to note that two variables may be perfectly correlated in the dictionary sense, but be mathematically completely uncorrelated.
Consider . There aren’t even any random variables in this one. The variable y is completely determined by x. And yet, if you calculate the correlation coefficient between x and y on the interval
, you will find that it is exactly zero. This is a wonderful example of the fact that not only is correlation not causation, causation may not imply correlation! This insight has been brought to you by my former officemate, a statistician who occasionally would let slip wonderful fun facts like this one.
* Of course, and y are perfectly correlated even though x and y are not, but we’d need to use a different instrument variable
to find that correlation.









