Covariance measures the relationship between two random variables and to what extent, they change together or we can say- it is essentially a measure of the variance between two variables.
• Positive covariance: Indicates that two variables tend to move in the same direction.
• Negative covariance: Indicates that two variables tend to move in opposite direction.
• Correlation measures the strength of the relationship between variables.
· Denoted by greek alphabet ρ (rho).
· Its value lies between -1 to 1, both inclusive.
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