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covariance Definition

co·vari·ance (ver′ē əns, kōver-)

noun

Statistics a measure of the relationship between two variables whose values are observed at the same time; specif., the average value of the product of the two variables diminished by the product of their average values

covariance Finance Definition
A statistical tool that measures the likelihood of two random variables moving together.
covariance Usage Examples

Preposition: of

  • variable: A wire is a line, usually curved, used in a path diagram to represent variances and covariances of exogenous variables.

Converse of object

  • use: We therefore propose that the GEM approach be applied to adaptation of hidden Markov models which use non-diagonal covariances.
  • specify: For example, returns the covariance specified between the elements and in belief store 1, .
  • calculate: Calculate the inverse covariance of the full Gaussian, and use the partitioned inverse equations to obtain the covariance for the known data.

Adjective modifier

  • adjusted: For each pair of elements in the base B, say, we store their adjusted covariance, .
  • general: These reflections show at the same time how natural the demand for general covariance is.
  • low: This lower covariance should make REITs a better diversification investment vehicle.
  • average: The incremental average covariance and the incremental realized variance are found to be negative during the 1987 crash and the 1992 ERM crisis.
  • full: Support for diagonal and full covariance Gaussian mixture HMMs.
  • non-diagonal: We therefore propose that the GEM approach be applied to adaptation of hidden Markov models which use non-diagonal covariances.

Modifies a noun

  • matrix: The fourth option allows the user to specify a variance covariance matrix for the shocks.
  • structure: To be useful this model would have to take into account the spatial covariance structure.
  • function: Then we can sample from these models to choose a single model, from which an exact covariance function can be calculated.
  • model: A simulation experiment is conducted for covariance structure models.
  • analysis: It can perform various statistical analyzes on these including 2 forms of covariance analysis.
  • term: The variance is computed using the formula ( 6.26 ) The missing covariance terms are positive, so eq.

Noun used with modifier

  • eddy: The original calibration and corroboration of the SPA model was against long-term eddy covariance data from the Harvard Forest, Massachusetts.
  • variance: The fourth option allows the user to specify a variance covariance matrix for the shocks.
  • error: At update times, the error covariance is calculated from the ensemble.
  • sample: In the case where spatial information is available, this is encoded in the estimation of the sample covariance matrix.

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