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

##### 1 Answer

Nov 3, 2015

#### Answer:

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#Cov(x,y)# 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.