Covariance Vs Correlation: Understanding The Difference In Statistics
Covariance measures the direction of linear relationship between variables, while correlation standardizes this measure to indicate both direction & strength. Covariance can be positive, negative or zero, whereas correlation ranges from -1 to 1.
Covariance and correlation are fundamental concepts in statistics that help us analyze the relationship between two variables. While both measure how two variables move in relation to each other, they offer different insights. This article will explore the differences and similarities between covariance and correlation, their applications, and provide illustrative examples. What is Covariance? Covariance is a statistical measure that indicates the direction of the linear relationship between two variables. It assesses how much two variables change together from their mean values....