Measuring Triangular Macro Correlation

Abstract

This study explores a new and simpler way of assessing the co-relation of the interaction between variables having opposite effects like “If one grows the other declines”. The proposed Triangular correlation treats these data as an aggregate or single bloc of data, situated within the three sides of a triangle formed by the hypotenuse, the adjacent side of the triangle, on the horizontal axis, and the opposing side of that triangle, on the vertical axis. The hypotenuse is the longest side of the triangle, a line fitted by least square to the highest data. The intersection of the hypotenuse with the axes determines the length of both segments and their ratio, the mega-correlation coefficient M, reflects the data accumulation inside the triangle. M is interpreted like r2, even though these coefficients measure different, complementary aspects of the co-relation.