What Is a Combination Chart?
Businesses utilize charts to highlight different sets of data. It’s a great way to provide clarity and gather insights into the information that has been collected over a period of time. After collecting data, it’s important that it’s displayed appropriately to better understand and further explore specific topics and variables.
These factors are what ultimately affect a business and its growth. For example, a business can use a column chart to compare several different products. They can then use this same type of chart to show how often the product is used every day.
This allows the business to understand which product is performing better and make decisions based on the information that’s been gathered. And this is just one example of how a specific type of chart can be used in business applications. On this page, you’ll learn all about combination charts, when they’re used, and some of their pros and cons.
What are combination charts?
If you’re on this page, then you’re likely thinking to yourself, “What is a combination chart?” The reason it’s called a combination chart is that it utilizes two or three different chart types together. For example, it could have both a bar chart and a line chart or even a dot chart and area chart.
The combination of bars and lines diversifies the type of data so that it can include different types of information. This also makes it easy to highlight differences between multiple sets of data and examine their relationship. It shows if there’s any correlation between different types of information.
How are combination charts used?
In real-life examples, the combo chart is perfect for mixed data types like price or volume. It’s a great method to learn whether there are any outliers and if there’s a need to communicate data shape rather than just the value of different categories. It can show relationships and trends, so they’re often used as a basis for analytic tools.
This includes the Pareto analysis, which is a technique that’s used for decision-making. A business can use this analysis combination chart to identify which tasks are creating the most change. Combo charts can be used to show the dollar value of specific products for a chain of retailers and show any unique customers. It provides more in-depth information than just a single chart to help optimize business.
Are there different types of combination charts?
The most common type of combo chart utilizes the line chart and bar chart. This diagram uses a vertical line and a horizontal bar graph to show different types of data and relationships between existing charts. A column and line combo chart have vertical bars and a horizontal line that shows categorical data. Multiple categories can be shown through multiple columns, and it’s a great way to see trends.
There’s also a combo chart that uses area charts, column charts, and line charts. The area charts have a line graph with a shaded portion to compare data sets. It’s important that, when data is plotted for this type of chart, the information isn’t crowded or messy. Low values are at the bottom with the line at the top.
Combination charts are a great way to identify any outliers as well as show the influence of interaction between two sets of charts. Its biggest advantage is the ability to show the relationship between charts if there is one. But it does have some disadvantages.
Sometimes, combo charts are difficult to interpret, and they might give the impression that the data points are related when they aren’t. It’s important for the layers to be arranged. Keep it simple and label things correctly to avoid any misrepresentation.
What Is a Combination Chart?