Correlations

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Description

The correlation coefficient between number of cards (approximately number of cardholders) and card turnover for each industry, is a statistical measurement of the strength of the relationship between the relative movements of two variables. The values range between -1 and 1 and a correlation of -1 shows a perfect negative correlation, while a correlation of 1 shows a perfect positive correlation. A correlation of 0 shows no linear relationship between the movement of the two variables – number of cards and card turnover. The closer the correlation coefficient is to the value of 1 the higher the impact is between the number of cards and card turnover. If it approaches 0, then the correlation between the amount of consumers and their spending is close to none. In a few cases the correlation coefficient is negative which means more cards equal less turnover. This happened in the Travel industry during Covid-19 lockdown, as people only got refunds and made no purchases. 

The area of residence analysis is only estimated based on previous transaction patterns, therefore, this should only be used as an indicator. 

If you needs the normalised card turnover and number of cards turn to the Historical comparison.

FAQ

Which industries are benefiting the most from Chinese tourists in Denmark?  

  • The industries with a high positive correlation coefficient. Remember to set your filters, China as Issuer country and Denmark as a Merchant country.  

What industries are mostly impacted by the presence of Danish issued cards in Skåne?  

  • The industries with a high positive correlation coefficient. Remember to set your filters, Denmark as Issuer card and Skåne as a Merchant area.   

Who is in average spending the most on alcohol in Denmark – Norwegians or Germans?  

  • Compare the correlation coefficient when merchant country is Denmark and Issuer country is Norway and Germany. Also, the category to examine is Bars and Liquor Stores. The highest coefficient value spends the most. Remember, this requires two requests in order to make this comparison on Nationality Correlation.

Response

{

    "result": [

        {

            "category": {Category},

            "correlation": {Correlation coefficient}

        } ... 

    ],

    "status": {Response status code},

    "errorMessage": {Error message, if any error otherwise null}

}