Covariance measures price correlation between 2 individual assets while variance measures the volatility of an individual stock over time. The formula to calculate beta is as follows: ...

The covariance calculation shows how two stocks move together, which is helpful when building a diversified investment portfolio. Learn how this calculation is used.

Find out what portfolio variance is, the formula to calculate portfolio variance, and how to calculate the variance of a portfolio containing two assets.

In addition, simple closed-form ML and restricted maximum likelihood estimators for the variance and covariance parameters exist for every member. As a consequence, closed-form expressions for the ...

In this article we define and illustrate a procedure that obtains numerically stable asymptotic variance-covariance matrices using only the code for computing the complete-data variance-covariance ...