covariance

CFA Level II Quant
#1

Covariance with the MSCI Europe Large Cap Index

VeriZoom: 0.022 MSCI Europe Large Cap Index: 0.04

My question is why the covariance of MSCI Europe Large Cap Index with itself is not 1?

#2

Covariance of asset with itself is an asset variance.

#3

ah ha, it makes sense.

#4

Do not mistake covariance for correlation.

#5

Thank you magician, I was indeed mistaken.