Two-predictor variance inflation ($1/(1-{\rho }^2)$)

For two centered predictors with squared norms $n$ and correlation coefficient $\rho$, the ordinary least squares estimate of either partial slope has variance ${\sigma }^2/[n(1-{\rho }^2)]$. Compared with the same predictor alone and the same error variance, the inflation factor is $1/(1-{\rho }^2)$. The eigenvalues of the slope Gram matrix are $n(1+\rho )$ and $n(1-\rho )$.