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Explain Covariance and correlation.

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Basic Math

Explain Covariance and correlation.

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Covariance Covariance measures the directional relationship between the returns on two assets A positive covariance means that asset returns move together while a negative covariance means they move inversely Covariance is calculated by analyzing atreturn surprises standard deviations from the expected return or by multiplying the correlation between the two variables by the    See Answer
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