Word similarity/dissimilarity is measured via cosine similarity, which has a very nice property of being bound between -1 and 1. Perfect similarity between two words will yield a score of 1, no relation will yield 0, and -1 means that they are opposites.
Take a look at the following diagram:
For those who are interested in other measures of similarity, a recent research has been published that makes a strong case for using Earth-Mover's Distance ...