Correlation vs Covariance
Connection and Covariance are closely related terms but there are lot to differ when we need to choose one of these. Connection and Covariance are two normally utilized factual ideas significantly used to gauge the direct connection between two factors in information. At the point when used to think about examples from various populaces, covariance is utilized to recognize how two factors fluctuate together while connection is utilized to decide how change in one variable is influencing the adjustment in another variable. Despite the fact that there are sure likenesses between these two scientific terms, these two are unique in relation to one another. Peruse further to comprehend the distinction among covariance and relationship.
It is a pointer of how much two factors change concerning each other i.e.., it gauges the heading of straight connection between these two factors .The estimations of covariance can lies in the scope of – ? to +?
Xi – values of X variable
Yj – values of Y variable
X?- mean of x variable
Y?- mean of y variable
N- Number of data points ( n-1 for sample covariance)
Correlation defines the strength and direction of linear relationship between two variables otherwise you can simply say that it is a normalized version of covariance. so when you divide the covariance with standard deviation of the variables, it scales down the range to -1 to +1 , comparatively correlation values are more interpretable.
Now let’s see see the difference between Correlation and Covariance:
one of major difference in these two is Covariance is influenced by the change in scale but in case of correlation values are not influenced by change in scale. rest we can with below table:-