Are COVID Cases Affecting the Fed Balance?
In this blog post, we are going to look at the relationship between Covid cases and the United States Federal Balance.
When looking at relationships between variables, it is important to not automatically assume causality from the correlation. As we can see in our visualization, the relationship between these two variables of Covid cases and the Federal Reserve Assets is not one that indicates a correlation.
You can view the full pipeline here.
The assets vs the COVID-19
- Blue line: Total of assets divided by 100.
- Orange line: Covid cases per week.
As you can see on the graph, there is not a consistent correlation between the Federal Reserve assets and the covid cases. The only possible correlation would be when initially when covid starts and the assets rise. However, as we can see in the graph, the later rise of the assets happens before the rise of cases, not aligning with a correlation.
Interpreting visualizations correctly
But how can we tell if a visualization is correct or not? Well, for starters, just because two sets of information appear in the same graph or chart, it doesn’t mean there is a correlation. Additionally, correlation isn’t causation. With data analysis and visualization, you are able to make graphs of whatever you desire, even with the most unrealistic but interesting things you can imagine. With these graphs, and the data visualization, you have a responsibility to properly tell the story of the data, or interpret the data someone else has created.
Other ways to tell if a visualization is accurate is by looking at the labels and how they present the information. Do they manipulate the visualization to make it seem more impactful? What are they trying to say with the chart? Is it as meaningful as they say it is? Does the analysis presented make sense when compared to the information given? Those are some questions to ask when analyzing a visualization. Additionally, checking the sources of that information helps.
If you're interested in learning more about understanding and reading graphs, check out some of the resources below!
Hal9’s Interface provides you with various types of charts, transformations and ready-to-use AI models to analyze data with ease.
If you are interested in using AI models in your data analysis, please give hal9.ai a try and let us know what you think. If you’re ready for a bigger challenge, you can create entirely new transformations, visualizations or predictive models, and contribute them to our open source GitHub repository.
We also have a Twitter Hal9 account, worth following to learn more about Artificial Intelligence, visualizations, and data analysis.