Quick Navigation
COVAR Function
Summary
The COVAR function calculates the covariance between two data sets, measuring how two variables change together. Positive covariance indicates that the variables tend to move in the same direction, while negative covariance suggests opposite movement.
Syntax
COVAR(array1, array2)Parameters
| Parameter | Type | Required | Description |
|---|---|---|---|
| array1 | Array |
Yes | Required first array or range containing numbers |
| array2 | Array |
Yes | Required second array or range containing numbers |
Using the COVAR Function
COVAR helps identify whether two variables tend to increase or decrease together. Use it in financial analysis to study relationships between returns, in quality control to examine process variables, or in research to understand variable dependencies.
Common COVAR Examples
Basic Covariance Calculation
=COVAR(A2:A6,B2:B6)Calculates covariance between two datasets showing positive relationship (Result: 5.2)
Marketing Analysis
=COVAR(Ads_Spent, Sales_Revenue)Measures if advertising spend correlates with revenue growth
Stock Analysis
=COVAR(StockA_Returns, StockB_Returns)Analyzes if two stocks move together over time
Frequently Asked Questions
Common Errors and Solutions
#N/A Error
Cause: Arrays have different numbers of data points
Solution: Ensure both arrays contain the same number of values
#DIV/0! Error
Cause: One or both arrays are empty
Solution: Provide data in both array arguments
#VALUE! Error
Cause: Arguments contain non-numeric data
Solution: Use only numeric values or ranges containing numbers
Notes
- **Deprecated Function**: Microsoft recommends COVARIANCE.P or COVARIANCE.S for new workbooks
- Ignores text, logical values, and empty cells (but includes zeros)
- COVAR uses population covariance formula (divides by n)
- Array1 and Array2 must have identical count of numeric values
Compatibility
Available in: Excel for Microsoft 365, Excel 2021, Excel 2019, Excel 2016, Excel 2013, Excel 2010, Excel 2007
Not available in: Future Excel versions (deprecated), Excel 2003 and earlier
Content last reviewed: December 8, 2025
Update frequency: As needed
Excel versions tested: Excel for Microsoft 365, Excel for Microsoft 365 for Mac, Excel for the web, Excel 2024, Excel 2024 for Mac, Excel 2021, Excel 2021 for Mac, Excel 2019, Excel 2016