Company A - Expected Value

Company A - Variance and Standard Deviation

Company B - Expected Value

Company B - Variance and Standard Deviation

Correlation between the two companies.

Covariance is the sum of the (Difference * Probability) for each state:

Correlation Coefficient can then be caluclated by dividing the covaraince by the product of the standard deviation for Company A and standard deviation for Company B.

In summary there is a

Company A - Variance and Standard Deviation

Company B - Expected Value

Company B - Variance and Standard Deviation

Covariance is the sum of the (Difference * Probability) for each state:

Correlation Coefficient can then be caluclated by dividing the covaraince by the product of the standard deviation for Company A and standard deviation for Company B.

In summary there is a

**weak-to-strong positive correlation**between expected value for Company A and expected value for company B.