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covariance
(redirected from covariances)

   Also found in: Dictionary/thesaurus, Financial, Encyclopedia, Wikipedia 0.01 sec.
covariance /co·var·i·ance/ (ko-vār´e-ins) a measure of the tendency of two random variables to vary together.
covariance [ko-va´re-ans]
a measure of the tendency of two random variables to vary together. It is the expected value of the product of the deviations of corresponding values of two random variables from their respective means.

covariance
the expected value of the product of the deviations of corresponding values of two random variables from their respective means.

covariance method
used for the calculation of relationship and inbreeding in large populations.


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The technique is fairly straightforward where what is needed is quantitative data on the variance, the returns and the covariances or correlations between different assets with regard to their returns.
In the money-denominated models, the indices for each alternative increase about 10% in absolute value, as preference variation assigned to the scale parameter in CLR is associated with variation in preferences for particular attributes in RPCLR, and again with covariances in preferences for particular attributes in RPCLR with correlation.
He did not know how to measure variances and covariances yet he was aware of the possibility of risk reduction through diversification.
 
 
 
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