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What's the practical difference between correlation and covariance, in
terms of what they're used for?
Yes, I've got the formulas for both in the Excel Help files. Yes, I see
that correlation is bounded by -1 and 1.
But in practical terms...if you're trying to find stocks that are move very
much like a given index, or conversely, if you're trying to create a
portfolio of stocks (or markets) that zig while the other zags...would you
use correlation or would you use covariance as a measure?
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