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