1. a measure of how much two random variables change together
Usage: statistics; mathematics

Examples

• The covariance between height and weight is positive since taller people tend to weigh more.
• A covariance of zero indicates that the two variables are independent.
• The statistician calculated the covariance to determine the relationship between the datasets.
• Positive covariance means the variables tend to increase together.
• The portfolio’s risk depends on the covariance between different stock returns.
• Understanding covariance helps predict how one variable might change when another changes.