# Covariance Homework Help

## Best UK USA Australia Canada UAE China Covariance Homework Help Service Online

Covariance measures the fluctuation between two random variables. It measures how change in one variable is related to changes in other variable and degree of linear association between two random variables. It also measures how two variables are related monotonically. The covariance Cov (M, N) of random variable M and N is defined as Cov (M, N) = E [(M-E [M]) (N-E [N])]

### Properties of Covariance

Properties of covariance given by Covariance Homework Help are

For a given constant a and random variables A, B and C, the following properties hold

• Cov(A,A) = Var(A) >= 0

• Cov(A,B) = Cov(B,A)

• Cov(aA,B) = aCov(A,B)

• Cov(A+B,C) = Cov(A,C) + Cov(B,C)

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### Applications of Covariance

Some applications of covariance given by Covariance Homework Help are

• Use in financial Economics- Covariance has an important role in financial business economics, especially in capital asset pricing model and portfolio theory. Under certain assumptions, covariances are used to determine the amount of various assets ( in a normal analysis or in a positive analysis) that investors should select to hold in a context of diversification.

• Use in molecular biology and genetics- Covariance is an important role in the field of molecular research. It helps to study the secondary and tertiary structure of RNA or protein. The structure sequence of closely relates species are compared, the comparison is by Covariance Homework Help.

• Use in micrometeorology- The covariance technique plays a key role in calculating the vertical turbulent fluxes by measuring the covariance between instantaneous deviation in vertical wind speed from the mean value and instantaneous deviation in gas concentration.

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