# correlation of two sums of random variables

Imagine two random variables $X$ and $Y$ which are correlated with $\rho = 1$.

Both have a mean of $100$ and a standard deviation of $40$. Two other random variables $U$ and $V$ are correlated at $\rho=0.8$. Both have a mean of $0$ and standard deviation of $20$.

Now, I wonder if there is a formula to compute the correlation of $A = X+U$ and $B=Y+V$?

$\text{cor}(X,U)=\text{cor}(X,V)=\text{cor}(Y,U)=\text{cor}(Y,V)=0$

Any ideas on how to compute $\text{cor}(A,B)$?

• What does "cor(xu,xv,yu,yv)" mean? – Glen_b -Reinstate Monica Jun 27 '14 at 10:16
• Since this is routine book-work, please add the self-study tag and read its tag-wiki info, altering your question if necessary. – Glen_b -Reinstate Monica Jun 27 '14 at 10:17
• thanks, didn't know that. it means that cor(x,u) cor(x,v) and so on is zero – beginneR Jun 27 '14 at 10:44
• Just for a numerical check: the correlation between $A$ and $B$ is $0.92$. – COOLSerdash Jun 27 '14 at 11:18

2) Write covariance as an expectation and use elementary properties of expectation to compute $\text{cov}(X+U,Y+V)$.