# Covariance and Correlation of Stock Returns – Excel Template

Covariance and Correlation of Stock Returns are statistical measures of the relationship between two asset returns. If they move in the same direction, the covariance has a positive sign; if they move in opposite directions, the covariance is negative, and if their movements are independent, the covariance between the stock returns equals zero.

Some other related topics you might be interested to explore are Variance of a Stock Return and Standard Deviation of Return.

This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as a Statistician, Financial Analyst, Data Analyst, or Portfolio Manager.

Covariance and Correlation of Stock Returns are included in the Portfolio Management module of the CFA Level 1 Curriculum.

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