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What is the polarization identity? Hi I am studying stochastic calculus and my professor often mentions "Polarization Identity" but I do not know how it is defined. I tried googling it but could not find the right definition and meaning. Could someone give me the mathematical definition?

The polarization identity holds for any scalar product $\langle \cdot,\cdot \rangle$:

$$\langle x,y \rangle = \frac{1}{4} \big( \langle x+y,x+y \rangle - \langle x-y,x-y \rangle \big).$$

In $\mathbb{R}$ this equality boils down to

$$x \cdot y = \frac{1}{4} \big( (x+y)^2-(x-y)^2 \big). \tag{1}$$

One important application in stochastic calculus is a generalization of Itô's isometry: In fact, using $(1)$, it follows easily that

$$\mathbb{E} \left( \left[ \int_0^t f(s) \, dB_s \right]^2 \right) = \mathbb{E} \int_0^t f(s)^2 \, ds$$

implies

$$\mathbb{E} \left( \int_0^t f(s) \, dB_s \cdot \int_0^t g(s) \, dB_s \right) = \mathbb{E} \int_0^t f(s) \cdot g(s) \, ds.$$

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