Correlation

Discussion in 'Trading' started by J-S, Oct 31, 2002.

  1. J-S

    J-S

    Hi - Can anyone help?

    I'm looking for the best and quickest way to measure the degree of correlation between different markets.

    Is there a specific indicator, or piece of software that will do this for me? I'm looking mainly at currencies and commodities & trading a trend following system.

    thanks in advance

    J-S
     
  2. You can find this function in Excel...
     
  3. J-S - if you can get the beta of the applicable sector indices, you can then derive the intersector correlation.

    Betas are usually computed compared to the S&P. Since the two betas have a common comparison, they can then be compared to each other.