Question

Is covariance always positive?

Answer 1

Determine if the covariance is always positive

Covariance is defined as the measure of the relationship between two random variables. It shows the extent to which the variables change together. If both the variables change in the same direction i.e. if one increases then the other also increases, the covariance is positive. But if one variable is high and the other tends to be low, then the covariance is negative.

Therefore, we can say that the covariance is not always positive. It can be positive as well as negative.