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To begin with, we will introduce to the concepts. So, here it is.
A Small Note on Covariance and correlation Coefficient
A covariance is an indication of the nature of relationship between two variables. A positive covariance indicates a positive relationship which suggests the variables move in same direction, while a negative covariance in indicative of a negative relationship between the variables and that they move in opposite directions.
Correlation is another method of determining the nature of relationship between two variables. Apart from indicating whether they are positively or negatively related, which Covariance does, it also measures the degree to which the variables move together.
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