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:

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