If $\rho$ is a Pearson correlation coefficient, say between the price of crude oil and gold, what is $1-\rho$?

More specifically, what is the interpretation of $1-\rho$? Would it be the degree of disassociation between two series?

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# Correlation Coefficient – What is 1-??

correlationregression

If $\rho$ is a Pearson correlation coefficient, say between the price of crude oil and gold, what is $1-\rho$?

More specifically, what is the interpretation of $1-\rho$? Would it be the degree of disassociation between two series?

## Best Answer

Looking for a degree of dissociation, as you stated in the comments, you might want to look at $1-\rho^2$. $\rho^2$ is always between $0$ and $1$ so subtracting it from $1$ will lead to values between $0$ and $1$.

$\rho^2$ is often used in linear regression where it is known as $R^2$