# Both the covariance and the correlation coefficient measure the extent to which the returns on securities move together. What is the relationship between the two statistical measures? Why is the correlation coefficient a more convenient measure?

Both the covariance and the correlation coefficient measure the extent to which the returns on securities move together. What is the relationship between the two statistical measures? Why is the correlation coefficient a more convenient measure?

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**Related Book For**

## Fundamentals of Investments

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

ISBN: 978-0132926171