I'm new to Statistics. How do we calculate the correlation coefficient from covariance, by Standardization or Normalization?
I understand, that for better interpretation, we calculate correlation coef. Since we are dividing covariance by the standard deviations of 2 RV, it makes sense to say that correlation is a "standardized value of covariance". But, in some text books, and blogs, I could see that people referring "correlation coef" as "normalized value of covariance". Are they using these terms interchangeably?
(To my knowledge, Normalization changes the values to be in the range of 0-1, and Standardization converts the values, such that it has 0 mean and 1 standard deviation.)