covariance value

What Does A Positive Covariance Mean?

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What Does A Positive Covariance Mean? 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. What do positive values of covariance indicate? Covariance mainly represents the direction of relationship of two variables. A positive sign of

What Is Considered A High Covariance?

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What Is Considered A High Covariance? Covariance gives you a positive number if the variables are positively related. You’ll get a negative number if they are negatively related. A high covariance basically indicates there is a strong relationship between the variables. A low value means there is a weak relationship. What is the range for