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Learning pandas - Second Edition by Michael Heydt

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Determining covariance and correlation

Covariance and correlation describe how two variables are related. This relation can be one of the following:

  • Variables are positively related if they move in the same direction.
  • Variables are inversely related if they move in opposite directions.

Both covariance and correlation indicate whether variables are positively or inversely related. Correlation also tells you the degree to which the variables tend to move together.

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