Data analysis is primarily used to identify and quantify correlations and patterns between variables so that they can be used for future predictions and corresponding models can be trained. The correlation matrix is a crucial method that helps to graphically represent the correlation, i.e. the dependency, between two variables in a dataset.

In this article, we take an in-depth look at the concept of correlation and how the correlation matrix helps to show the dependencies between variables. This includes, for example, looking at the calculation and interpretation of the correlation matrix in detail and explaining how such a matrix can be created in Python. A comprehensive picture also includes showing the limitations of this method so that its use and significance can be correctly assessed.

What is a Correlation Matrix?

The correlation matrix is a statistical method for quantifying and comparing the relationships between different variables in a dataset. The pairwise correlations between all combinations of two variables are shown in a tabular structure. Each cell in…