how do you quickly find CORRELATION

Discussion in 'Trading' started by darwin666, Feb 21, 2010.

  1. say for example you hold USO and u are also long RIG

    we know RIG is long OIL also..

    so they are correlated... and if I have 20-30 different ones and now want to add some which are negitively correlated.. be it any which is being actively traded..

    I hope I am able to express my dilemma. .

    is there a website where you can input a series of stocks and it spits out a matrix where you can see correlation

    To generate a net correlation for all the stocks in your list you could do this in amibroker and add all the correlations to get a net +- number on all the positions.

    That would be very basic, though I don't know if it would be mathematically accurate just summing them...
  3. Sure, if you really want equities I think some of the pairs trading software are much more sophisticated for correlation. I just like to watch USD vs. everything else.
  4. TraDaToR


    great tool:)
  5. Correlation or ven cointegration won't help you make any money in the longer term. To make money you must assume plain vanilla risk.

    The difference between 0.98 and 0.99 can be what ruins an account.