# Correlation Analysis (Numerical vs Categorical data) in Google Sheets

I'm trying to find the correlation between a categorical and numerical data by using google sheets. The result of CORREL function is 0.041.

Could anyone help how to proceed from here to understand if the correlation is meaningful?

The correlation must be close to 1 for positive correlation, respectively -1 for negative correlation. A correlation whose coefficient is 0.041 is an insubstantial correlation.

Correlation coefficient:
< 0.1 Very small, negligible, insubstantial
0.1-0.3 Small, minor
0.3-0.5 Moderate, medium
0.5-0.7 Large, high, major
0.7-0.9 Very large, very high
0.9 > Almost perfectly, describes the relationship between two practically indistinguishable variables

• Whether a correlation is "meaningful" depends on many things. No guidelines like this will be appropriate except in narrow circumstances. For instance, in many physical experiments a correlation of $99.99\%$ would be unacceptably low, whereas in some social sciences correlations around $20\%$ to $30\%$ would be outstanding and in financial applications any significant correlation, no matter how tiny, could be worth a small fortune.
– whuber
Commented Jul 5, 2022 at 20:51