https://gdpark.blog/tags/covariance/Recent content in Covariance on gdpark.blogHugoenTue, 20 Dec 2016 00:00:00 +0000https://gdpark.blog/posts/corporate-finance-09-portfolio-variance-and-covariance-matrix/Mon, 19 Dec 2016 00:00:00 +0000https://gdpark.blog/posts/corporate-finance-09-portfolio-variance-and-covariance-matrix/We level up from single-stock picking to full portfolio selection — figuring out how to compute a portfolio’s μ and σ using the covariance matrix.https://gdpark.blog/posts/corporate-finance-10-minimum-variance-portfolio/Tue, 20 Dec 2016 00:00:00 +0000https://gdpark.blog/posts/corporate-finance-10-minimum-variance-portfolio/Walks through how diversifying stocks makes individual risk basically vanish while covariance dominates, with a hands-on two-stock example using correlation coefficients 0, 1, and -1.