Correlations between many elements in a system inevitably contain indirect correlations from other elements.

You should also be very careful when you calculate a correlation between Time series.


Handling indirect correlation

The indirect correlation leads us to inaccurate prediction. There are several ways to filter out those indirect edges with spurious correlation:

Aggregating correlation

Sometimes, we want to average correlation values. A standard method is performing Fisher transformation and average the z values then transform it back to correlation coefficient.

Constructing networks from correlation matrices

Correlation Matrix

Correlation and causation

Generalized ways of inferring associations