Canonical correlation and chi-square: Relationships and interpretation

A 2 X 2 chi-square can be computed from a phi coefficient, which is the Pearson correlation between two binomial variables. Similarly, chi-square for larger contingency tables can be computed from canonical correlation coefficients. The authors address the following series of issues involving this relationship: (a) how to represent a contingency table in terms of a correlation matrix involving r -1 row and c - 1 column dummy predictors; (b) how to compute chi-square from canonical correlations solved from this matrix; (c) how to compute loadings for the omitted row and column variables; and (d) the possible interpretive advantage of describing canonical relationships that comprise chi-square, together with some examples. The proposed procedures integrate chi-square analysis of contingency tables with general correlational theory and serve as an introduction to some recent methods of analysis more widely known by sociologists.