dos anyone know how to calc out correlation on a BA II plus pro. I have tried but can’t seem to get the correct answer. Also, how do you calc covariance from correlation or vice versa? is it possible to do with proabability? EG (.20) to earn .18% on asset 1 and .10 on asset 2 Here is an exampple from schweser…

Unless I’m missing something: CORR (A,B) = COV (A,B)/(St.Dev. A)x(St.Dev. B) COV (A,B) = CORR (A,B)x(St.Dev. A)x(St.Dev. B) I don’t know why a calculator would calculate it out, it’s just simple math…

maybe it was confusing, I meant calculating it with a data set

the stats give you the correlation and the standard deviation of x and y.

beingthatguy Wrote: ------------------------------------------------------- > dos anyone know how to calc out correlation on a > BA II plus pro. I have tried but can’t seem to > get the correct answer. > > Also, how do you calc covariance from correlation > or vice versa? > > is it possible to do with proabability? EG (.20) > to earn .18% on asset 1 and .10 on asset 2 > > Here is an exampple from schweser… I am not sure if I understand your question. If you are talking about getting the correlation on a probability of return questions, the only way I know I know how to do it is manually. If you are talking about a problem that has a list of returns from X and Y, you just plug it into the calculator under data and go to stats.

Use the “data” function to enter values for x and y and than press the “stat” function, scroll down untill you see the value for “r”. For Cov simply use this value and standard deviations for x and y. Milos

Milos, thanks but I guess the question was about > If you are talking about getting the correlation > on a probability of return questions, the only way > I know I know how to do it is manually. >