Which of the following statement is correct about correlation?

Correlation studies and measures the direction and intensity of relationship among variables.

The correct answer is Option 1: Correlation studies and measures the direction and intensity of relationship among variables. 

Correlation studies and measures the direction and intensity of relationship among variables. (Option 1 is correct)

Correlation measures covariation, not causation. (Option B is incorrect)

Correlation should never be interpreted as implying cause and effect relation (Option 3 is incorrect). The presence of correlation between two variables X and Y simply means that when the value of one variable is found to change in one direction, the value of the other variable is found to change either in the same direction (i.e. positive change) or in the opposite direction (i.e. negative change), but in a definite way. For simplicity we assume here that the correlation, if it exists, is linear, i.e. the relative movement of the two variables can be represented by drawing a straight line on graph paper.