Possible correlation matrices (3 variables)

An interesting question is what kind of correlation matrices are possible with three variables (A, B and C). If we know, that there is a correlation between A and B as well as B and C, what kind of correlation can occur between A and C. What are the possible maximum values of the correlation between A and B and between B and C, when the correlation between A and C variables is null? Continue reading “Possible correlation matrices (3 variables)”

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