corr. coefficient & covariance

The covariance depends on the scale of measurement and so it is not easy to say whether a particular covariance is small or large. The problem is solved by standardizing the value of covariance to get the so called coefficient of correlation.

cov(x, y)= (correlation coefficient)*(standard deviation of x)*(standard deviation of y)

p.s. correlation coefficient is always in between -1 and 1