In probability theory and statistics, covariance is a measure of the joint variability of two random variables. [1] The sign of the covariance, therefore, shows the tendency in the linear relationship …

What is Covariance? Covariance in statistics measures the extent to which two variables vary linearly. The covariance formula reveals whether two variables move in the same or opposite directions. …

Covariance measures joint variability — the extent of variation between two random variables. It is similar to variance, but while variance quantifies the variability of a single variable, covariance …

Dec 9, 2025 · Covariance measures how two random variables change together. It is calculated by averaging the product of their deviations from their means. A positive value means they move in the …

Nov 13, 2025 · Covariance measures the joint variability of two random variables—that is, how much variables change together. This attribute is used to determine the direction of a relationship between …

May 10, 2025 · What Is Covariance? Covariance is a statistical tool that measures the extent to which two random variables (usually, the returns on two assets) change together.

Jun 24, 2025 · Covariance is a fundamental statistical function that measures how two variables, x and y, change together. If the variables tend to increase or decrease simultaneously, covariance is positive.

Dec 3, 2025 · Covariance provides a measure of the strength of the correlation between two or more sets of random variates.

Covariance is a single number we can calculate from a list of paired values. ... It tells us if the paired values tend to rise together, or if one tends to rise as the other falls.

Here, we'll begin our attempt to quantify the dependence between two random variables X and Y by investigating what is called the covariance between the two random variables.