Statistics 101: Covariance. In this video we discuss the very basics of what covariance is (and isn't) using two real-world examples; stock market index covariance and worker productivity covariance. We reach back to basic algebra to explain the relationship between to variables in the coordinate plane. The video also includes a hand-calculation of covariance which luckily is quite simple. Finally, we hint at upcoming videos as we briefly discuss the relationship between covariance, correlation, and linear regression. Enjoy! For my complete video library organized by playlist, please go to my video page here: http://www.youtube.com/user/BCFoltz/videos?flow=list&view=1&live_view=500&sort=dd