Question

What is the relationship between the correlation of two variables and their covariance?

Answer 1

The explanation is given below.

Explanation:

When we study the data retailing to two variables X and Y, we obtain a measure of the correlation coefficient between X and Y.
The correlation coefficient is obtained as
r =`[`Cov(x,y)`/(sigma_x`.`sigma_y)`]
Here `Cov(x,y)` signifies the variation between X and Y
`sigma_x` is a measure of the standard-deviation within the values of X.
`sigma_y` is the measure of the standard deviation of values within Y.