How to calculate covariance

If you explore how to find covariance, then you are at the right spot. Here you will get to what covariance is and how to calculate it. So let’s begin: 

What is Covariance?

There exists a relationship between variables. For instance, if we have two random variables, say x and y, we need to determine their relationship. You can find out this with the use of covariance. Math and statistic use this term most frequently. It reflects the entire variation possible of variables. The sample covariance calculator lets the students find the relation of both variables. Covariance can be:

  •         Large positive covariance
  •         Near zero covariance
  •         Large negative covariance

Covariance calculator online is available for free to use and offers the facility to use multiple times at one time. It does not let you face any challenge or difficulty in using it.

How to Find Covariance?

You can find how much variation is between two variables, and similarly, you can explore the similarity between these. Variance and covariance seem similar to each other. However, in actuality, variance informs about the variation of a single variable. On the contrary to this, covariance is the determination of two variables togetherness to each other. If you want to measure covariance, then you need to use the following formula:

Cov(X,Y) = Σ E((X-μ)E(Y-ν)) / n-1

This formula is the main cream for finding the covariance value. Here x and y are the variables. Cov reflects covariance. The mean of variable x is represented by μ. However, the mean of variable y is represented by v. While n is reflective of the number of elements in the given set. Use the covariance calculator for getting the results quite smoothly and accurately.

Example of Covariance:

The covariance calculator facilitates the users to calculate covariance from the covariance matrix, correlation coefficient, and data set. Let us understand the example of covariance to make the concept easier. Consider the set y and x having mean values of 11 and 3.1, respectively. The set y contains the elements 8, 10, 12, and 14, while the set x contains the elements 2.1, 2.5, 3.6, and 4.0.

When the values are entered in the covariance calculator, the results quickly come up on the screen. The resultant for this calculated form covariance matrix calculator will be 2.267. Enter values of both variable sets in the online calculator and then click on Calculate button. You will instantly get the précised and accurate answer.