In Excel 2010, the COVAR function has been replaced by the COVARIANCE.P function, which has improved accuracy.
The Excel COVAR function calculates the covariance of two supplied sets of values.
The syntax of the function is:
Where array1 and array2 are two arrays of numeric values.
Note that if the supplied arrays contain text or logical values, these are ignored by the Covar function.
Columns A and B of the above spreadsheet on the right contain two sets of values.
The Covariance of the values in columns A and B of the spreadsheet can be calculated using the Excel Covar function, as follows:
This gives the result 16.633125, which indicates a positive correlation between the two sets of values.
For further examples of the Excel Covar function, see the Microsoft Office website.
If you get an error from the Excel Covar Function, this is likely to be one of the following:
|#N/A||-||Occurs if the two supplied arrays have different lengths.|
|#VALUE!||-||Occurs if one or both of the supplied data arrays are empty.|