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

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  • Опубликовано: 19 дек 2024

Комментарии • 44

  • @OneMinuteEconomics
    @OneMinuteEconomics  Год назад +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 года назад +16

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

  • @loveyouself5389
    @loveyouself5389 5 месяцев назад

    Wow!!! wisdomatic teaching thank you so much!

  • @OneMinuteEconomics
    @OneMinuteEconomics  Год назад

    If you liked this video, I think you'll love The Age of Anomaly, my Wall Street Journal and USA Today best-selling book about preparing for financial calamities (whatever they may involve). You can buy it over at:
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  • @Timbone07
    @Timbone07 5 лет назад +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 лет назад +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 лет назад

      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 лет назад

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

  • @maxkappers9693
    @maxkappers9693 3 месяца назад

    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?

  • @petervandenbempt3290
    @petervandenbempt3290 Месяц назад

    1:33 why?

  • @silviyaivanova218
    @silviyaivanova218 Год назад

    Thank u so much , i finally got it!

  • @karanveer033
    @karanveer033 5 лет назад +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

  • @justforknowledge6367
    @justforknowledge6367 3 года назад +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 года назад

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

    • @prithvidhyani2002
      @prithvidhyani2002 2 года назад +1

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

    • @user-zx7vh6mp8n
      @user-zx7vh6mp8n 8 месяцев назад

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

  • @anchalsharma6075
    @anchalsharma6075 2 года назад

    Thanq so much sir ☺

  • @alexdaimari756
    @alexdaimari756 4 года назад

    Thank you SIR...🤟😎🎉

    • @OneMinuteEconomics
      @OneMinuteEconomics  4 года назад

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

  • @adnan.q.753
    @adnan.q.753 3 года назад

    Amazing!

  • @mitchellyoung8561
    @mitchellyoung8561 3 года назад

    Talk about rounding down!

  • @samcrazecomedy1691
    @samcrazecomedy1691 2 года назад

    Nice content, I just learnt something new. Thanks 🙏

  • @malikmedical1183
    @malikmedical1183 3 года назад

    thanks sir

  • @cocoarecords
    @cocoarecords 3 года назад

    amazing

  • @iganic7574
    @iganic7574 Год назад +2

    N-1 ????? Why

    • @ty_vorhies
      @ty_vorhies Год назад

      “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 Год назад

      This might help: ruclips.net/video/KkaU2ur3Ymw/видео.html

  • @latanezimbardo7129
    @latanezimbardo7129 4 года назад +1

    didn't know that Dwight teaches statistics

    • @OneMinuteEconomics
      @OneMinuteEconomics  4 года назад +2

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

    • @latanezimbardo7129
      @latanezimbardo7129 4 года назад

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

  • @sihammisso
    @sihammisso 6 месяцев назад

    LEGENDDDDDDDD

  • @MrOdsplut
    @MrOdsplut 3 года назад +1

    That's 2 minutes

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 года назад +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