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What is the difference between covariance and correlation coefficient?

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What is the difference between covariance and correlation coefficient?
by ♦ Diamond (89,175 points) | 343 views

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Covariance:

  • The covariance is a measure of the linear association between two variables.

 

Correlation Coefficient:

  • The Pearson correlation coefficient can take on values between \(-1\) and \(+1\).
  • Positive values indicate a positive relationship.
  • Negative values indicate a negative relationship.
  • The closer the correlation is to zero, the weaker the relationship.
by ♦ Diamond (89,175 points)

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