How to Create a Correlation Graph in Excel (With Example)

Often you may want to create a graph in Excel that allows you to visualize the correlation between two variables.

This tutorial provides a step-by-step example of how to create this type of correlation graph in Excel.

Step 1: Create the Data

First, let’s create a dataset with two variables in Excel:

Step 2: Create a Scatterplot

Next, highlight the cell range A2:B21.

On the top ribbon, click the Insert tab, then click Insert Scatter (X, Y) in the Charts group and click the first option to create a scatterplot:

The following scatterplot will appear:

Step 3: Add Correlation Coefficient

To calculate the correlation coefficient between the two variables, type the following formula into cell A23:

=CORREL(A2:A21, B2:B21)

The following screenshot shows how to use this formula in practice:

The correlation coefficient between these two variables is 0.9835.

Feel free to add this value in the title of the scatterplot if you’d like:

correlation graph in Excel

Note that the correlation between two variables can range between -1 and 1 where:

  • -1 indicates a perfect negative linear correlation
  • 0 indicates no linear correlation
  • 1 indicates a perfect positive linear correlation

In our example, a correlation of 0.9835 represents a strong positive correlation between the two variables.

This matches the pattern that we see in the scatterplot: As the value for x increases, the value for y also increases in a highly predictable manner.

Related: What is Considered to Be a “Strong” Correlation?

Additional Resources

The following tutorials explain how to perform other common tasks in Excel:

How to Create a Scatterplot Matrix in Excel
How to Add Labels to Scatterplot Points in Excel
How to Add a Horizontal Line to a Scatterplot in Excel
How to Create a Scatterplot with Multiple Series in Excel

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One Reply to “How to Create a Correlation Graph in Excel (With Example)”

  1. Every site I look up is showing this info, but I’m trying to find out how to graph the correlation as it changes over time. For instance often the correlation of bitcoin to the Nasdaq is strong other times it is not. Can’t figure out if there’s a standard way to measure that or if you have to decide on a moving average value time frame to plot correlation over time.

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