Discover how to calculate covariance to assess stock relationships and optimize your portfolio, balancing risk and potential ...

rho = -0.993 This is a VERY strong relationship! 9. Discuss the difference between the covariance and the Pearson's r. Pearson's r involves a modification of covariance. Instead of using the sum of ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Covariance indicates the relationship ...

Harry Markowitz famously quipped that diversification is the only free lunch in investing. What he did not say is that this is only true if correlations are known and stable over time. Markowitz’s ...