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Correlation after opposite-sign linear transforms

Question

Two random variables X1X_1, X2X_2 have correlation coefficient 0.20.2. New variables are formed as Y1=2X1+1Y_1=2X_1+1 and Y2=−4X2+3Y_2=-4X_2+3. Find the correlation coefficient of Y1Y_1 and Y2Y_2.

Short answer

−0.2-0.2. Correlation ignores additive constants and positive scaling, but a negative scale factor flips its sign. The covariance picks up the product of slopes, 2⋅(−4)=−82\cdot(-4)=-8, while the product of standard deviations picks up 2⋅4=82\cdot4=8, so the ratio becomes −0.2-0.2.

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