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Communality

In factor analysis, the proportion of a variable's total variance explained by the underlying common factors, distinct from variance specific to it alone.

Last reviewedDarrin Baines IP Ltd

Concept Architecture

Concept


Theoretically, Communality is a measure in factor analysis that quantifies the proportion of an observed variable's variance explained by the common factors retained in the model. It is founded on the common factor model, in which each observed variable is assumed to consist of shared variance attributable to latent factors and unique variance attributable to specific effects and measurement error. Communality exists to assess how well each variable is represented by the extracted factor solution.

Mathematically, communality is represented as the sum of the squared factor loadings for a variable across all retained common factors. It ranges from 0 to 1, with higher values indicating that a greater proportion of the variable's variance is explained by the common factors. The remaining unexplained variance is the variable's uniqueness.

In practice, communality is calculated after factor extraction and is examined when evaluating variable adequacy within exploratory or confirmatory factor analysis. Variables with very low communalities may contribute little to the latent structure and are often considered for removal. In health economics, communality is used during the development and validation of multi-item instruments, patient-reported outcome measures and latent construct analyses.

Purpose


Used to quantify the proportion of variance in each observed variable explained by common factors, supporting assessment of variable representation, factor adequacy and instrument development.


Mathematical Formulae

Primary Formula

For variable i:

h?� = ????? ???�

where:

  • h?� = communality
  • ??? = loading of variable i on factor j
  • m = number of retained factors

Supporting Formulae

Uniqueness:

u?� = 1 ? h?�

Variance decomposition:

Var(X?) = h?� + u?�

(for standardised variables)

Related Mathematical Methods

  • Exploratory Factor Analysis
  • Confirmatory Factor Analysis
  • Principal Axis Factoring
  • Maximum Likelihood Factor Analysis
  • Factor Rotation
  • Factor Loading
  • Eigenvalue Analysis

Example

A quality-of-life questionnaire contains an item with factor loadings of 0.72, 0.31 and 0.18 on three retained factors.

Communality:

h� = 0.72� + 0.31� + 0.18�

h� = 0.5184 + 0.0961 + 0.0324

h� = 0.647

Therefore, approximately 64.7% of the item's variance is explained by the common factors, while the remaining 35.3% represents unique variance.


Excel Implementation

FunctionExample FormulaHealth Economics Application
SUMSQ=SUMSQ(B2:D2)Calculates communality from squared factor loadings.
SUMSQ=1-SUMSQ(B2:D2)Calculates uniqueness.
IF=IF(E2<0.40,"Review","Retain")Flags variables with low communalities for instrument refinement.

VBA (Optional)

Automate calculation of communalities and uniqueness values for all variables following factor extraction, highlighting variables with inadequate representation.


Sources

  • Harman HH. Modern Factor Analysis.
  • Fabrigar LR, Wegener DT. Exploratory Factor Analysis.
  • Hair JF, Black WC, Babin BJ, Anderson RE. Multivariate Data Analysis.
  • Briggs A, Claxton K, Sculpher M. Decision Modelling for Health Economic Evaluation.
  • ISPOR Good Research Practices for Patient-Reported Outcomes.

Library

Publications

1
  • Book

    Statistical Analysis of Cost-Effectiveness Data — Willan & Briggs, 1st Edition ed., 2006 (John Wiley & Sons)

    A synthesis of statistical methods for analysing cost-effectiveness data, including net-benefit regression, confidence intervals for the ICER, cost-effectiveness acceptability curves, and covariate adjustment. Part of the Wiley Statistics in Practice series.

Frequently Asked Questions (6)

  • What is communality?

    In factor analysis, the proportion of a variable's total variance explained by the underlying common factors, distinct from variance specific to it alone.

    Source: Spearman 1904

  • What does communality tell us about a variable in factor analysis?

    In factor analysis, communality is the share of a variable's variance that the underlying common factors account for, as opposed to the part unique to that variable alone. A high communality means the variable is well explained by the shared factors and fits the model, while a low one means it stands largely apart, driven by something the factors do not capture. Examining it shows how well each measured variable belongs to the factor structure. How much a variable shares with the common factors is what it captures. Kline (2015) describes this concept.

    Source: Kline 2015

  • How is communality calculated?

    Communality is calculated as the sum of the squared factor loadings of a variable across the common factors, since each squared loading gives the proportion of the variable's variance explained by that factor, and their sum gives the total explained by all the common factors. So communality is the sum of a variable's squared loadings on the retained factors, expressing the share of its variance accounted for by the common factors, and the remaining variance, one minus the communality, is the uniqueness, comprising variance specific to the variable and measurement error, which the common factors do not explain.

    Source: Spearman 1904

  • What does communality indicate?

    Communality indicates how well the common factors account for a measured variable: a high communality means most of the variable's variance is explained by the factors, so it is well represented in the factor solution, while a low communality means the factors explain little of it, suggesting the variable shares little with the others or is poorly captured. So communality indicates the degree to which a variable is explained by the underlying factors, helping to judge which variables fit the factor structure well and which do not, and low communalities may signal variables that should be reconsidered or removed from the analysis.

    Source: Spearman 1904

  • How does communality relate to uniqueness?

    Communality relates to uniqueness as its complement: for a standardised variable, the communality is the proportion of variance explained by the common factors, and the uniqueness is the remaining proportion, one minus the communality, which comprises variance specific to the variable plus measurement error. Together they account for all the variable's variance. So communality and uniqueness partition a variable's variance into the part shared with the common factors and the part particular to the variable, and this division is central to factor analysis, which seeks to explain the shared variance among variables through a smaller set of common factors.

    Source: Spearman 1904

  • Why is communality important in factor analysis?

    Communality is important in factor analysis because it shows how much of each variable's variance the common factors explain, informing judgements about how well the factor solution represents the variables and whether particular variables belong in it. Low communalities flag variables poorly captured by the factors. So communality matters for evaluating and refining a factor analysis, since it indicates the adequacy of the factor structure for each variable, guiding decisions about retaining or dropping variables and about how many factors are needed, which helps ensure the extracted factors meaningfully account for the shared variation among the measured variables.

    Source: Spearman 1904

Trust Record

Verified by Dr Darrin Baines

British health economist

Professional identity: darrinbaines.org

Verification date: 12 Dec 2025

Content version: 1.0.0

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