Correlation, allocation in a portfolio. Calculation methods - page 2
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All you have to do here is type "correlation" into a search engine and you're bombarded with answers.
wikipedia plus.
or is there some other approach?
Only again, correlation is a trivial averaging of two or more series to estimate
by the same eyes:
first the raw materials change direction and then the ones that buy the raw materials
but the correlation will say, no, they are the same
In TA actions it is often harmful. In any case, you have to look at the reality of the organisation, and in our own. A couple of criminal cases will bring down any rise) As well as the arrival of all-powerful people in management to stop the fall.
Correlation by industry makes sense just to assess the evenness of development, nothing more, in my opinion. I.e. there will be a large range in high-tech and near-scientific industries, a smaller range in industry sectors.
ZS, I really don't understand why the topic is here and not in general. Just, the most general topic of trading)))In TA actions it is often harmful. In any case, you have to look at the reality of the organisation, and in our own. A couple of criminal cases will bring down any rise) As well as the arrival of all-powerful people in management to stop the fall.
Correlation by industry makes sense just to assess the evenness of development, nothing more, in my opinion. I.e. there will be a big range in high-tech and near-scientific industries, less in industry sectors.
SZS, I do not understand why the topic here and not in the general. Just, the most general topic of trading)))This is because there are those who do not evaluate any additional factors other than price.
Because here sit those who do not evaluate any additional factors other than price.
Not all of course, but I would agree that most do))) Generally, these tasks are too different. In large companies, by the way, statistics with econometrics are also used for forecasting)) But there they are initially closer to the situation on the ground)))
Not all of course, but I would agree most of them are.) In general, they are too different tasks. By the way, big companies also use statistics and econometrics for forecasting)) But there they are initially closer to the situation on the ground)))
Every company has its own models) they can say anything
Every company has its own models) they can say anything
Models, EPR, ... are of course different, even accounting. But the aims are the same and the reasoning behind the decisions is approximately the same. In addition, accounting tries to derive a real average valuation for investors. Through the development of the values from reports one may orientate oneself. Certainly not according to the last report, at least the last three years should be looked at. But first you have to learn to understand what is written there)))
Models, EPR, ... are of course different, even accounting. But the aims are the same and the reasoning behind the decisions is approximately the same. In addition, accounting tries to derive a real average valuation for investors. Through the development of the values from reports one may orientate oneself. Certainly not according to the last report, at least the last three years should be looked at. You have to learn to understand what is written there)))
It's not about the quality of trade, reports and other stuff)
I need to select low-correlated assets for appropriate deversification of risk
For example forex and crypto are highly correlated, so the signal on 1 currency will be triggered almost the same way as on the other.
An online service for calculating correlation, autocorrelation and cointegration of assets. There are many other interesting things on the service's homepage.
What is the model for calculating the correlation?