New Income Tax Expense vs Interest Expense Analysis

The correlation between New Horizon's Income Tax Expense and Interest Expense is 0.8. Overlapping area represents the amount of variation of Income Tax Expense that can explain the historical movement of Interest Expense in the same time period over historical financial statements of New Horizon Aircraft, assuming nothing else is changed. The correlation between historical values of New Horizon's Income Tax Expense and Interest Expense is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Income Tax Expense of New Horizon Aircraft are associated (or correlated) with its Interest Expense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Interest Expense has no effect on the direction of Income Tax Expense i.e., New Horizon's Income Tax Expense and Interest Expense go up and down completely randomly.