What is Covariance?

Covariance is a statistical measure that indicates the degree to which two random variables change together. It measures the directional relationship between two variables, showing whether they tend to move in the same or opposite directions. A positive covariance indicates that the variables tend to move in the same direction, while a negative covariance suggests they move in opposite directions. When the covariance is zero, it implies no linear relationship between the variables.

How to Calculate Covariance Using This Calculator

Step 1: Select the data type between ‘Sample’ or ‘Population’. Choose ‘Sample’ if your data represents a subset of a larger population, or ‘Population’ if it includes all possible observations.

Step 2: Enter your X-values in the first input field. These values should be numeric and separated by commas. For example: 1,2,3,4,5

Step 3: Enter your Y-values in the second input field, ensuring you have the same number of Y-values as X-values. These should also be comma-separated numeric values.

Step 4: Click the calculate button to obtain your results. The calculator will display the covariance value along with a detailed explanation of the calculation process.

Step 5: Review the results and interpretation provided below the calculation. The explanation will include the means of both variables, the formula used, and an interpretation of whether the covariance indicates a positive or negative relationship between the variables.

Step 6: For additional calculations, simply input new values and recalculate. The calculator will automatically update with new results and explanations.