[!def] What is Co-variance?
Co-variance is the metric to find out positive, negative or no relation between two different dataset / distribution

[!def] Formula of Co-variance
Co-variance(x, y) = \frac{\sum (x_i - \bar{x}) (y_i - \bar{y})}{N-1}

  • Co-variance tells us the direction of the linear relationship between two random variables.
  • Co-variance is hard to interpret because it is susceptible to scale
  • So if the scale increases with same relationship, the values differ a lot
  • The only observation we can have
    • $Co-variance > 0$ - Positive Relation
    • $Co-variance < 0$ - Negative Relation
    • $Co-variance = 0$ - No Relation
  • The range of Co-variance is $[-\infty, +\infty]$

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