noun
- 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.