# Covariance

*Risk & Portfolio — Finicade finance glossary*

The raw measure of whether two assets move together, before it's scaled into a tidy −1-to-+1 correlation. It's the building block of portfolio risk maths — the whole covariance matrix feeds into a portfolio's variance.

**Related terms:** [Correlation](https://finicade.com/glossary/correlation), [Variance](https://finicade.com/glossary/variance), [Portfolio](https://finicade.com/glossary/portfolio)

**Taught in:** Math Masters — Covariance, Correlation & Beta

Source: https://finicade.com/glossary/covariance