Covariance

{
  "id": "MLC-T-INS-001005",
  "term": "Covariance",
  "field": "Insurance and risk management",
  "definition": "A statistical measure indicating the directional relationship between the returns of two assets or variables. A positive covariance suggests that the variables move in the same direction, while a negative covariance indicates they move in opposite directions. It is calculated as the expected value of the product of the deviations of two variables from their respective means.",
  "url": "https://mlchart.com/terminology/insurance/covariance/"
}