Covariance Analysis

Covariance analysis is a statistical method used to understand how two variables change together. If both tend to increase or decrease at the same time, they have positive covariance. If one increases while the other decreases, they have negative covariance. When covariance is close to zero, the variables are likely unrelated. It helps identify relationships between variables, which can be useful for modeling and predicting outcomes. Essentially, covariance analysis measures the direction and strength of the linear relationship between two variables, providing insight into how they interact within a dataset.