The Formula for Correlation Correlation combines two important and related statistical concepts: variance and standard deviation . Variance is the dispersion of a variable around the mean.

In this formula, r represents Pearson's correlation coefficient. Find the covariance of two variables, which will be called x and y. Take that number, ... beta and standard deviation.

Standard deviation, on the other hand, measures the extent to which an investment's return deviates from the expected return. More volatile investments (those that have bigger risks) have a higher ...

Calculating standard deviation manually can be time-consuming and complex. Excel's STDEV formula can automatically calculate the standard deviation of any set of numbers, so you don't have to go ...

First, let's look at what a standard deviation is measuring. Consider two small businesses with four employees each. In one business, two employees make $19 an hour and the other two make $21.

The Formula for Correlation Correlation combines two important and related statistical concepts: variance and standard deviation . Variance is the dispersion of a variable around the mean.