**How To Calculate Covariance In Excel?**

We can detect the existence of a correlation relationship by examining the covariance.

Covariance is the average of the products of the deviations of each data point pair.

Use covariance to define the relationship between two datasets.

- A positive value of covariance occurs when both examined characteristics are moving in the same direction.
- Negative covariance occurs when the increase in the value of one feature tends to decrease the value of the other.

**Sample Covariance**

To calculate sample covariance use COVARIANCE.S Excel function.

*COVARIANCE.S syntax:*

**=COVARIANCE.S(array1,array2)**

In the given example sample covariance formula is

**=COVARIANCE.S(A2:A10,B2:B10)**

**Population Covariance**

To calculate population covariance use COVARIANCE.P Excel function.

COVARIANCE.P syntax:

**=COVARIANCE.S(array1,array2)**

In the given example sample covariance formula is **=COVARIANCE.P(A2:A10,B2:B10)**

In most cases you will use sample covariance. Use covariance of population function only when it is specifically said that it population covariance.