The advantage that the coefficient of correlation has over the covariance is that the former has set lower and upper limits.

Question

Quizplus · Accepted Answer

The coefficient of correlation (also known as Pearson's correlation coefficient) ranges from -1 to +1, where -1 indicates a perfect negative correlation, 0 indicates no correlation, and +1 indicates a perfect positive correlation. In contrast, the covariance has no fixed upper or lower limit, and its value depends on the units of the variables being measured.

The Advantage That the Coefficient of Correlation Has Over the Covariance