1. A method of characterizing a borehole traversing an earth formation, comprising: a) obtaining an array of data from a formation characterization tool, wherein said data describes a section of said borehole; b) computing at least one spatial characteristic describing the relative position of pairs of data; c) assigning said pairs of data to bins based on said spatial characteristic, wherein the size of said bins are selected based on said tool; d) transforming said data to petrophysical properties of said borehole; e) calculating the variance of each bin; f) developing a model of said variances; g) determining at least one geostatistical parameter using said model; and h) upscaling said geostatistical parameters to characterize a region of said earth formation.