**COVARIANCE** Covariance
is a measure of the relationship between 2 or more random variables or how 2
random variables vary together. Its similar to variance, but where variance
tells you how a single variable varies, covariance tells you how 2 variables
vary together. Positive
covariance means as one variable increases the other one also increases. For
example: lets’ take 2 variables height and weight. As heights increases weight
also increases. Negative
covariance means as one decreases, the other one also decreases. For example,
as salary decreases, the expenditure also decreases. Measuring
something in inches would be say 12 and converting the same into centimetres
would be different only because of the unit change. So its hard to tell how
strong the relationship is based on the actual magnitude of the covariance.

**CORRELATION** On one
hand, covariance indicates the direction of the linear relationship between the
variables whereas correlation on the other hand, indicates both the strength
an…