# What is the relationship between the correlation of two variables and their covariance?

Nov 3, 2015

The explanation is given below.

#### Explanation:

When we study the data retailing to two variables X and Y, we obtain a measure of the correlation coefficient between X and Y.
The correlation coefficient is obtained as
r =[Cov(x,y)/(sigma_x.sigma_y)]
Here $C o v \left(x , y\right)$ signifies the variation between X and Y
${\sigma}_{x}$ is a measure of the standard-deviation within the values of X.
${\sigma}_{y}$ is the measure of the standard deviation of values within Y.