# Covariance

Difference Between Covariance and Correlation

Covariance indicates the direction of the linear relationship between variables. Correlation on the other hand measures both the strength and directio...

Difference Between Variance and Covariance

In statistics, a variance is the spread of a data set around its mean value, while a covariance is the measure of the directional relationship between...

covariance matrix to correlation matrix

Converting a Covariance Matrix to a Correlation Matrix First, use the DIAG function to extract the variances from the diagonal elements of the covaria...

covariance calculator

How do you calculate covariance?How do you calculate covariance in Excel?How do you find the covariance between two stocks?What does covariance tell?C...

intuition behind covariance

Covariance is a measure of how much two variables change together. Compare this to Variance, which is just the range over which one measure (or variab...

correlation matrix vs covariance matrix

“Correlation” on the other hand measures both the strength and direction of the linear relationship between two variables. Correlation is a function o...