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How do you calculate a variance covariance matrix explain with an example?
variance - covariance - how to calculate and its uses
How do you find covariance of two variables?
The covariance between two variables is simply the average product of the values of two variables that have been expressed as deviations from their respective means. ------------------------------------------------------------------------------------------------- A worked example may be referenced at: http://math.info/Statistics/Covariance
Where can one find information on the covariance matrix?
One can find information on the covariance matrix on the Wikipedia website where there is much information about the mathematics involved. One can also find information on Mathworks.
How 2 calculate a variance covariance matrix?
look in a maths dictionary
Why is covariance important?
Maybe I'm not providing a full information. But if you're asking about importance of covariance in trading, then before investing you should assess if your stocks are codependent. All investors try to diversify a portfolio and minimize risks. and covariance can show if two stocks are exposed to the same risk. Now it's easily calculated, there're different services. Actually, for better understanding just read Investopedia really.
