Correlation calculator

Discussion in 'Trading Software' started by SoCalOptionsWriter, Oct 20, 2022.

  1. I have a couple dogs I want to sell at the end of the year, but need a couple of other stocks with very high correlations to hold the position for 30 days for tax reasons. Is there a free calculator any where in which I can just type in the stock I own and it will give me a list of stocks with the highest correlations?
     
  2. Stratter

    Stratter

    DaveV likes this.
  3. TrAndy2022

    TrAndy2022

  4. Cool. Thanks.
     
  5. frnw

    frnw

  6. I would really question if the strategy is not open to risk you aren't considering.
    Correlation is ever changing in the markets and using a full year of data might not mean much in a month period.
    If you run the correlation for C and BAC going back a year from today you get a coefficient of 0.9396 as you would expect for two large banks and over a full year period.
    If you compare the returns over this last month though they are quite different:

    [​IMG]

    It would be tough if expecting BAC returns and you get C until tax time.

    I have done a lot of analysis with covariance and it is annoying how sensitive the results are to the input date/time and window length. BAC and C was the first pair I looked at for this too trying to think of two obviously correlated stocks. Real good chance you won't find something with a coefficient of .9+ for your stocks.
     
  7. This website does not mention what look-back period is used to calculate the correlation. One month? One year? The entire available price history?