Var

[indre]

Dear David,
i would appreciate your help in one of my assignments. I have been following your videos on youtube, they are extremely helpful! However, i have a question from one of them:

How do you get the number in J12 / I13 window? Is it supposed to be the same as in E12? I would be the most happy if you have a quick look and help me because i can hardly find information, tutorials on his topic.
Best Wishes,
Indre

 

[ShaktiRathore]

Hi,
the values in Var-Covar matrix are covariance between Cad and Eur which is correlation*stdDev(x)*stdDev(y) =correlation*.05*.12=correlation*.006 when correlation =.2 value=.2*.0006=.0012.

thanks