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A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.  

*It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.*

It is *specifically* designed this way to keep it short and simple.  

People can then search out extra info if they wish.

I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.  

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## TERM OF THE DAY:

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## What is.... 

####  ' Covariance ' ?

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Covariance is a measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns move together, while a negative covariance means returns move inversely. Covariance is calculated by analyzing at return surprises (standard deviations from expected return), or by multiplying the correlation between the two variables by the standard deviation of each variable.


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## Breaking Down... 

#### ' Covariance ' :

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Possessing financial assets that provide returns that have a high covariance with each other does not provide very much diversification. 

For example, if stock A's return is high whenever stock B's return is high and the same can be said for low returns, then these stocks are said to have a positive covariance. Diversifying earnings or other company metrics can be done by investing in financial assets that have low covariance to each other.


-- Example Covariance Calculation:

When an analyst has a set of data, a number of pairs of x and y values, covariance can be calculated using five variable from that data. They are:

x(i) = a given x value in the data set

x(m) = the mean, or average, of the x values

y(i) = the y value in the data set that corresponds with x(i)

y(m) = the mean, or average, of the y values

n = the number of data points

Given this information, the formula for covariance is:

Cov(x,y) = SUM OF ((x(i) - x(m) * (y(i) - y(m)) / (n - 1)

For example, assume an analyst in a company has a five-quarter data set that shows quarter's gross domestic product (GDP) growth in percentages (x) and a company's new product line growth in percentages (y). The data set may look like:

Q1: x = 2, y = 10

Q2: x = 3, y = 14

Q3: x = 2.7, y = 12

Q4: x = 3.2, y = 15

Q5: x = 4.1, y = 20

The average x value equals 3, and the average y value equals 14.2. To calculate the covariance, the sum of the products of the x(i) values minus the average x value, multiplied by the y(i) values minus the average y values would be divided by (n-1), as follows:

Cov(x,y) = ((2 - 3) x (10 - 14.2) + (3 - 3) x (14 - 14.2) + ... (4.1 - 3) x (20 - 14.2)) / 4 = (4.2 + 0 + 0.66 + 0.16 + 6.38) / 4 = 2.85


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Your Friend in Liberty, Barry.  

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### Trading Candle Cheat Sheet: 

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![](https://steemitimages.com/DQmNt9DMeZvh8LbWJpR2RAnTA11e51A9W2EB5xuv2cpuYQu/image.png)


###### [Further Reading/Source/Resources](https://www.investopedia.com)


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### Friend of the People -- Enemy of the State. 

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https://i.imgur.com/iHrKXYo.jpg

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I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.  

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![](https://steemitimages.com/DQmWyN71naYPUrjJwdVVb4jpPen4GBAJV2SfSyxmwQ5ynPa/image.png)


![](https://steemitimages.com/DQmbY6f3Rcg3o6Pr1qoiJr8suc176Kr6M29jxRdszJmt1rf/image.png)


![](https://steemitimages.com/DQmR2qwoKj4cN8hHySD3KAc92GnvFJPqvyXoAFRYmRoro5Q/image.png)

![](https://steemitimages.com/DQmbrRvBxSEd8V3Fog2ev4bydDkusbGfR3iGEGF9RQd2pjK/image.png)


Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.


SMH.  

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## Bitshares 101 Focus/Resources Section: 

#### for New Crypto Folks. 

##### https://bitshares.org/

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![](https://steemitimages.com/DQmbue1DC4HAwzemUCBXLHdJcCg9jS1aTM8MWS2GNbvFX7b/image.png)

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-- Bitshares is a Trading platform, and a LOT more.... designed by blockchain wizard here Dan Larimer - @dan / @dantheman.

I've blogged on him, and BTS many many times.  

It's a place you can use that is decentralized, with an active community, to use trading lessons like this, that we are learning together.  


#### Just a few of my past $BTS blogs....

##### to help you apply lessons today!

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https://steemit.com/bitshares/@barrydutton/crypto-101-series-stan-larimer-the-godfather-of-bitshares-and-father-of-blockchain-liberty-genius-dan-larimer-interview-recently

https://steemit.com/bitshares/@barrydutton/will-blockchain-guru-dan-larimer-be-called-in-to-save-ethereum-as-crypto-kitties-grinds-eth-chain-to-a-halt-the-irony

https://steemit.com/cryptocurrency/@barrydutton/dan-larimer-video-interview-on-epicenter-recently-this-is-a-must-watch-listen-an-in-depth-look-chat-about-his-past-crypto-life

https://steemit.com/steemit/@barrydutton/dan-larimer-community-musical-tribute-post-a-music-video-to-say-thanks-and-best-wishes-to-our-steemit-co-founder

https://steemkr.com/bitshares/@barrydutton/so-tether-project-was-hacked-another-use-case-for-bitshares-and-dan-larimer-blockchain-genius-which-remains-undervalued-and


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Thanks for reading, have a nice day.      


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###### PixaBay has tons of free pictures for us all to use!!!     

###### Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/    



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http://i.imgur.com/68SXQpW.gif

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### If you liked this blog post - please Resteem it and share good content with others!

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#### Some of my recent blogs: 

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https://steemit.com/christmas/@barrydutton/and-to-all-a-good-night-pizza-how-i-love-thee

https://steemit.com/litecoin/@barrydutton/breaking-litepay-has-arrived-pay-for-goods-services-w-litecoin-and-accept-litecoin-as-a-merchant-this-is-exciting

https://steemit.com/funny/@barrydutton/meme-ing-the-blockchain-or-e-38-or-more-ath-s-next-week-for-sure

https://steemit.com/steem/@barrydutton/usdsbd-update-now-trading-7x-to-10x-usd8-57-avg-right-now-or-steemit-101-charts-basics-for-new-people-or-if-you-have-sbd-to

https://steemit.com/bitcoin/@barrydutton/the-correctioning-continues-video-crypto-101-tone-vays-former-wall-st-trader-show-trading-bitcoin-90-mins-usdbtcusd-still

https://steemit.com/crypto-news/@barrydutton/breaking-coin-exchange-cex-io-temporarily-suspends-registration-of-new-accounts-users-due-to-volume-or-merry-christmas

https://steemit.com/christmas/@barrydutton/my-simple-and-short-form-merry-christmas-to-you-steemit-family-thanks-for-the-laughs-love-votes-and-flags-lol

https://steemit.com/christmas/@barrydutton/ho-ho-hodl-steemians-what-are-you-not-doing-for-christmas-holidays-or-some-christmas-fun

https://steemit.com/bitshares/@barrydutton/crypto-sale-again-get-to-buyin-that-dip-overnight-crypto-market-cap-bleeds-out-usd40b-coins-on-sale






https://steemit.com/homesteading/@barrydutton/self-reliance-off-grid-homesteading-lifestyle-tip-of-the-week-or-the-grid-fights-to-keep-you-in-the-matrix-for-2-reasons-only-by

https://steemit.com/money/@barrydutton/investment-language-101-series-term-of-the-day-what-is-time-in-force-or-e-42-or-trading-candle-cheat-sheet-incl-each-episode

https://steemit.com/steemit/@barrydutton/facebook-wallet-fridays-show-me-yours-or-e-27-or-that-s-right-think-on-that-a-new-series-for-outreach-and-to-give-fb-the

https://steemit.com/health/@barrydutton/quote-of-the-day-don-t-let-idiots-ruin-your-day-or-we-never-know-who-may-need-this-today-or-the-replies-in-this-post-too

https://steemit.com/bitcoin/@barrydutton/the-droppening-update-crypto-101-video-58-mins-wcn-the-world-crypto-network-the-bitcoin-group-169-price-drop-coinbase-utxo-bcash

https://steemit.com/funny/@barrydutton/meme-ing-the-blockchain-or-e-36-or-quick-overview-of-what-hodl-means-for-the-new-crypto-fam-reminder-it-s-in-many-of-my-posts

https://steemit.com/curation/@barrydutton/the-steemu-asks-what-are-you-blogging-about-today-or-e-41-or-drop-your-links-and-ideas-here-like-mad-pictures-thoughts-ideas-etc

https://steemit.com/bitcoin/@barrydutton/the-crashening-update-lol-crypto-101-video-wcn-bitcoin-morning-brief-w-jimmy-song-tone-vays-daily-stream-from-today-38-mins-or

https://steemit.com/hohono/@barrydutton/hohono-steemit-christmas-series-14-or-7-day-photo-challenge-with-friends-you-are-invited-too-complete-rules-in-post




Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay.  Today: 


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##### <center>If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.

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LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE  

Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff

EOS (EOS)   -   0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0

Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477

Ethereum Classic (ETC)  - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c

Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX

DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS

PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh

Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv  

ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL              

 

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##### Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone.  I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.   

###### This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.

###### I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.                                  

###### Carry On.                                                           

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