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 ?
For example, the sharp fall in GDP volatility in the mid 1990s was primarily the result of a temporary fall in the co-variance of growth between the sectors.
Genetic variances and co-variances reflect how selection can be applied in the farms.
to repay its debt and preferred stock obligations is reflected in the strength of two major organizations -- AIC and Allstate Financial -- and the ability of these groups, which are subject only to modest co-variance in results, to provide dividends to service these obligations.
The graphical representation of variance (Vr) and co-variance (Wr) proposed additive gene action with partial dominanceaction.
Do this for all demes, and examine the co-variance among the pairs of measures.
to repay its debt and preferred stock obligations is reflected in the strength of two major organizations--AIC and Allstate Financial--and the ability of these groups, which are subject only to modest co-variance in results, to provide dividends to service these obligations.
Both analyses were done using the free R software's sem package (Fox, Nie & Byrnes, 2013), taking as entry data the matrix of variances and co-variances of the items involved.
Genotypic and environmental variance and co-variances in an upland cotton cross of interspecific origin.
The analysis of the measurement models let to the elimination of some indicators (totally, three indicators that presented saturations inferiors to 50) and the introduction of co-variances between errors of measures (totally, three co-variances between errors of measures in the mediator model of measurement).
Topics include: bivariate statistical tests, data evaluation, regression analyses (simple, multiple, and logistic), analysis of variances and co-variances (two-way, multivariate, and repeated measures), and canonical correlation analysis.
Even aside from problems connected with unscrupulous promoters, high rate-of-return variances and co-variances within and between the peripheral countries, together with large and infrequent (and hence underestimated) shocks, could easily have disturbed well-laid plans.