The covariance calculation shows how two stocks move together, which is helpful when building a diversified investment portfolio. Learn how this calculation is used.

Correlation and covariance are two of those financial terms that can cause the palms to start sweating or call up unpleasant memories of the SAT verbal section. In reality, it isn't that hard to ...

Understand how covariance is related to the risk and return of a portfolio of stocks and learn how it's used to maximize diversification and reduce volatility.

For the unbalanced analysis of covariance model with one covariate, a simple formula is given for the intraclass correlation coefficient estimator that results from Henderson's Method 3 estimation of ...