How does coefficient of correlation differ from coefficient of determination?

26 Views Asked by At

Let us take two variables in a data set $x$ and $y$ and values be $x_1...x_n$ similarly for $y$. And we are looking into the correlation of $x$ and $y$.

Coefficient of correlation is

$$\rho = \frac{Cov(x,y)}{S_xS_y}$$

And Coefficient of Determination is

$$R^2 = \frac{\sigma_{mean}^2 - \sigma_{fit}^2}{\sigma_{mean}^2}$$

How is $\rho^2 = R^2$.