How to Make Correlation Graph in Excel (with Easy Steps)

In this article, we will demonstrate how to make a Correlation Graph in Excel.

Introduction to Correlation Graph in Excel

A Correlation Graph is a type of chart which is mostly used in economics, statistics and the social sciences to see the differences or measure relations between two or more variables in a graph.

Direction of Correlation:

There are two types of direction in correlation:

Positive– When the correlation produces an upward slope, it indicates that the correlation is positive. If variable 1 increases, variable 2 will also increase, and vice versa.
Negative– When the correlation produces a downward slope, it indicates that the relationship between the variables is inversely proportional, called a negative correlation. If Variable 1 increases, variable 2 will decrease, and vice versa.

Let’s create a Correlation Graph in Excel.

Step 1 – Creating the Correlation Dataset

Suppose we have a dataset of the average temperatures and air conditioners sold in the months of a year.

Select the two columns containing the variables in the dataset.
Go to “Scatter chart” from the “Insert” tab.

Step 2 – Inserting and Naming Coordinates to Make the Correlation Graph

A scatter chart will appear.

Click on the chart and press on the “plus” sign to open the Options.
Click “Axis Titles” to name the axes.

After naming the chart, it will look like the following:

Step 3 – Formatting the Correlation Graph

In the chart, click on any point and right-click on it.
Choose “Add Trendline”.

From the “Format Trendline” option select “Linear”.
Tick the “Display Equation on Chart” and “Display R-squared value on chart” options.