Description

The correlation coefficient between the number of cards (approximately the 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 the 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 need 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 the issuer country and Denmark as the 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 the issuer card and Skåne as the merchant area.

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

  • Compare the correlation coefficient when the merchant country is Denmark and the 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.

Default Response

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