The Covariance Explained in One Minute: Definition, Formula and Examples

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  • Опубліковано 3 гру 2024

КОМЕНТАРІ • 44

  • @OneMinuteEconomics
    @OneMinuteEconomics  Рік тому +1

    GiganticWebsites.com is a project through which I make it possible for people to build truly gigantic websites (thousands of articles each!) at ridiculously low prices. If you have a great domain you want to turn into an amazing website or an existing site you'd like to upgrade/scale, visit our website or check out the One Minute Economics presentation video below:
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  • @85aayush5
    @85aayush5 3 роки тому +16

    Wtf!! How can you clear my whole concept in just a couple of minutes... amazinggggggggggggggggggggggggggggggg!!!!!!!

  • @loveyouself5389
    @loveyouself5389 5 місяців тому

    Wow!!! wisdomatic teaching thank you so much!

  • @maxkappers9693
    @maxkappers9693 2 місяці тому

    Wow it’s actually clear for me now, quick question though. In case of portfolio management (for example a portfolio with 50% in stocks and 50% in bonds) is it safe to assume that you’d use N and not N-1?

  • @Timbone07
    @Timbone07 5 років тому +1

    Haven't heard in years. Thanks for the refresher. An informative video. The class would have been simpler if my lecturer simplified things like you did but then again maybe I am just smarter now lol

    • @OneMinuteEconomics
      @OneMinuteEconomics  5 років тому +2

      Really happy you found it useful and understood the concept Timbone! I've always (more or less) jokingly stated that if you're numbers-savvy and hate people, you should become a statistics professor, heh. I'll try to publish more statistics-related videos on the channel because IMO, there's a meaningful need for statistics videos where the goal is simply getting the message across properly and helping people actually understand the concept rather than trying to sound smart by over-complicating things. Will be publishing one on the correlation coefficient next, hopefully some more to come this year :)

    • @karanveer033
      @karanveer033 5 років тому

      One Minute Economics hey if you're making one on correlation of coefficient.... Then please in the same video tell us the difference between that and Covariance and its applications in Finance... Cheers

    • @OneMinuteEconomics
      @OneMinuteEconomics  5 років тому

      I've just finished the script for the correlation coefficient video today haha, the video will definitely go live this month :)

  • @petervandenbempt3290
    @petervandenbempt3290 Місяць тому

    1:33 why?

  • @anchalsharma6075
    @anchalsharma6075 2 роки тому

    Thanq so much sir ☺

  • @karanveer033
    @karanveer033 5 років тому +8

    Hey man, loved your content as usual..... Can you also cover such statistics topics like, Sharpe Ratio, Roy's safety first criterion ratio, etc.... Thanks

  • @malikmedical1183
    @malikmedical1183 3 роки тому

    thanks sir

  • @alexdaimari756
    @alexdaimari756 4 роки тому

    Thank you SIR...🤟😎🎉

    • @OneMinuteEconomics
      @OneMinuteEconomics  4 роки тому

      You're more than welcome Alex, thanks a lot for the kind words :)

  • @adnan.q.753
    @adnan.q.753 3 роки тому

    Amazing!

  • @silviyaivanova218
    @silviyaivanova218 Рік тому

    Thank u so much , i finally got it!

  • @OneMinuteEconomics
    @OneMinuteEconomics  Рік тому

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  • @mitchellyoung8561
    @mitchellyoung8561 3 роки тому

    Talk about rounding down!

  • @cocoarecords
    @cocoarecords 3 роки тому

    amazing

  • @sihammisso
    @sihammisso 5 місяців тому

    LEGENDDDDDDDD

  • @justforknowledge6367
    @justforknowledge6367 3 роки тому +2

    Thank you. Is their a limit, a least upper bound or the highest lower bound to the covariance value? Are there any restrictions to the value?

    • @TheNBSPerry
      @TheNBSPerry 2 роки тому

      1 and -1. 1 being perfect correlation and -1 being perfect negative correlation

    • @prithvidhyani2002
      @prithvidhyani2002 2 роки тому +1

      @@TheNBSPerry I think he was asking about covariance not correlation. and no there are no bounds on this value.

    • @user-zx7vh6mp8n
      @user-zx7vh6mp8n 7 місяців тому

      @@prithvidhyani2002
      How do covariance vary? In this eg. how do we evaluate this covariance? Is this High or Low?

  • @iganic7574
    @iganic7574 Рік тому +2

    N-1 ????? Why

    • @ty_vorhies
      @ty_vorhies Рік тому

      “Degrees of Freedom” - for Population, you divide by n. For a Sample, you divide by n - 1. You remove 1 degree of freedom for a Sample

    • @ty_vorhies
      @ty_vorhies Рік тому

      This might help: ua-cam.com/video/KkaU2ur3Ymw/v-deo.html

  • @samcrazecomedy1691
    @samcrazecomedy1691 2 роки тому

    Nice content, I just learnt something new. Thanks 🙏

  • @latanezimbardo7129
    @latanezimbardo7129 4 роки тому +1

    didn't know that Dwight teaches statistics

    • @OneMinuteEconomics
      @OneMinuteEconomics  4 роки тому +2

      I've waited over a year for someone to say this in a comment haha :D

    • @latanezimbardo7129
      @latanezimbardo7129 4 роки тому

      @@OneMinuteEconomics hey Dwight, please teach us how to grow beets too

  • @MrOdsplut
    @MrOdsplut 3 роки тому +1

    That's 2 minutes

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 роки тому +1

      Format-wise, it's all good as long as you start by saying "one minute" when pronouncing the length of the video... even if it's "one minute and fifty-nine seconds" :D