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COVARIANCE.P

The COVARIANCE.P function in Google Sheets calculates the covariance of two datasets. Covariance is a measure of how two variables change together, and this function is commonly used to understand the relationship between two sets of data. This function uses the formula for population covariance, so it is best suited for larger datasets.

Usage

Use the COVARIANCE.P formula with the syntax shown below, it has 2 required parameters:

=COVARIANCE.P(data_y, data_x)
Parameters:
  1. data_y (required):
    The first dataset of values to be used in the covariance calculation.
  2. data_x (required):
    The second dataset of values to be used in the covariance calculation. The two datasets must have the same number of values.

Examples

Here are a few example use cases that explain how to use the COVARIANCE.P formula in Google Sheets.

Understanding the relationship between two variables

By using the COVARIANCE.P function, you can determine whether two variables are positively or negatively correlated, and how strongly they are related. This information is useful for making predictions and identifying patterns in data.

Analyzing financial data

The COVARIANCE.P function is commonly used in finance to analyze the relationship between two investments. By calculating the covariance of two stocks or other assets, investors can determine whether they are likely to move in the same direction or opposite directions, and how much risk is associated with each investment.

Calculating portfolio risk

Investors can use the COVARIANCE.P function to calculate the covariance of multiple investments in a portfolio. By doing so, they can determine the overall level of risk associated with the portfolio, and adjust their investments accordingly to achieve their desired level of risk.

Common Mistakes

COVARIANCE.P not working? Here are some common mistakes people make when using the COVARIANCE.P Google Sheets Formula:

Invalid data range

One or both of the data ranges provided are invalid. Double check that the ranges are correctly selected and that they contain numerical data.

Data ranges are not the same size

The two data ranges provided are not the same size. The COVARIANCE.P function requires that both data ranges have the same number of data points.

Missing or extra arguments

The COVARIANCE.P function requires exactly two arguments: the data range for the y-variable and the data range for the x-variable. Double check that both ranges are included and that there are no extra or missing arguments.

Incorrect data order

The order of the data ranges may be incorrect. The COVARIANCE.P function requires that the first argument is the data range for the y-variable and the second argument is the data range for the x-variable.

Data ranges contain errors

One or both of the data ranges provided contain errors. Double check that the data is accurate and that there are no typos or mistakes.

Related Formulas

The following functions are similar to COVARIANCE.P or are often used with it in a formula:

  • CORREL

    The CORREL formula returns the correlation coefficient between two sets of data. This coefficient represents the strength of the linear relationship between the two sets of data, with values ranging from -1 (perfect negative correlation) to 1 (perfect positive correlation).

  • VAR.P

    The VAR.P function returns the variance of its arguments, which is a measure of the spread of a dataset in statistics. Unlike the VAR function, VAR.P function considers all the values in the dataset when calculating its variance, not just a sample of them. The function is commonly used to analyze the variability of a dataset and determine how much the data points deviate from the mean.

  • STDEV.P

    The STDEV.P function is a statistical function that calculates the standard deviation of a population based on a sample of numerical data. It is commonly used to measure the amount of variation or dispersion in a dataset. The formula assumes that the input values represent the entire population, rather than a sample. If the input values represent a sample, you should use the STDEV.S function instead.

  • AVERAGE

    The AVERAGE function calculates the average (arithmetic mean) of the values passed to it. It is commonly used to find the average of a range of cells containing numerical data.

  • SUM

    The SUM function in Google Sheets adds up a range of numbers. This function is most commonly used to sum the values in a range of cells.

Learn More

You can learn more about the COVARIANCE.P Google Sheets function on Google Support.