Covariance

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Related to Co-variance: Covariance matrix

Covariance

A statistical measure of the degree to which random variables move together. A positive covariance implies that one variable is above (below) its mean value when the other variable is above (below) its mean value.

Covariance

The degree to which two variables are correlated. That is, covariance is the measure of how much two variables are related to one another. It is important in security analysis to determine how much or how little price movements in two companies or industries are connected.

covariance

A statistical measure of the extent to which two variables move together. Covariance is used by financial analysts to determine the degree to which return on two securities is related. In general, a high covariance indicates similar movements and lack of diversification. Compare variance. See also risk.
References in periodicals archive ?
We postulate that shocks that are common to many sectors, such as changes in interest rates, the exchange rate and aggregate demand will tend to raise the sector co-variance and raise GDP volatility.
For the most part, the comparison of an intervention and matched comparison groups can be done with a t-test of the means or an analysis of co-variance on post-EAP averages controlling for pre-EAP scores.
It builds a bridge between, on the one hand, a recently renewed interest in conceptual analysis which extends our knowledge and, on the other hand, externalist semantics according to which concepts have objective content by means of their proper co-variance with real structures to which they thus refer.
Direct and maternal co-variance components and heritability estimates for body weight at different ages and fleece traits in Afrino Sheep.
Multiple analyses of co-variance (MANCOVAs), controlling for ethnicity, age group and gender, were used to investigate the effects of chronic disease status (group 1: no chronic disease; group 2: hypertension alone; group 3: hypertension plus one or more other chronic diseases; and group 4: other chronic diseases without hypertension) on health and well-being (Fig.
The researchers used an analysis of co-variance model, adjusting for baseline heavy drinking days, to examine factors associated with change in the frequency of heavy drinking.