[MINI] Covariance and Correlation

30/10/2015 14 min
[MINI] Covariance and Correlation

Listen "[MINI] Covariance and Correlation"

Episode Synopsis

The degree to which two variables change together can be calculated in the form of their covariance. This value can be normalized to the correlation coefficient, which has the advantage of transforming it to a unitless measure strictly bounded between -1 and 1. This episode discusses how we arrive at these values and why they are important.