Covariance is a measure that reflects both the variance (volatility) of a stock's returns and the tendency of those returns to move up or down at the same time relative to other stocks (their correlation). Covariance allows one to see if two stocks tend to move up or down together and how large those movements tend to be.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). covariance. Retrieved September 26, 2026, from http://smartdefine.org/covariance/definitions/1150994 |
| Chicago | Barry Goldsmith. 2010. "covariance" http://smartdefine.org/covariance/definitions/1150994 (accessed September 26, 2026). |
| Harvard | Barry Goldsmith 2010, covariance, Smart Define, viewed 26 September, 2026, <http://smartdefine.org/covariance/definitions/1150994>. |
| MLA | Barry Goldsmith. "covariance" 21 October 2010. Web. 26 September 2026. <http://smartdefine.org/covariance/definitions/1150994> |