To calculate the beta of Apple Inc. (NASDAQ: AAPL) as a specific example using the covariance/variance method, you would take the covariance of the expected return on AAPL stock to the average ...

To calculate the covariance of the assets, multiply the square root of the variance of Company A's stock by the square root of the variance of Company B's stock. The resulting covariance is 0.50.

To calculate statistical variance in Microsoft Excel, use the built-in Excel function VAR. Skip to content. News ... Mean-Variance Analysis: Definition, Example, and Calculation.

Covariance measures how two assets move in relation to each other. Covariance can be positive or negative. The formula for calculating covariance takes the daily return minus the mean return for ...