The following table shows percent price variations of the FTSE 100 (Financial Times Stock Exchange) and the NASDAQ composite (National Association of Securities Dealers Automated Quotation) in 8 consecutive days:
Day | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
FTSE100 | 0.32 | 0.54 | 0.63 | 0.1 | 0.15 | 0.32 | 0.21 | 0.32 |
NASDAQ | -0.04 | 0.64 | 0.21 | -0.02 | 0.04 | 0.21 | -0.32 | -0.11 |
Calculate the covariance and the correlation coefficient between the two indexes.
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