If you like X, you might also like A, B and C Take a look at the three most correlated stocks for every stock in the Nasdaq 100. We are using our massive correlation matrix for every stock and ETF that we could find (roughly 35,000). We update this matrix once per week. No small … Continued
The Indian stock market has staged a furious rally in 2021, and moreover, it hasn’t faltered amidst the recent correction in Chinese shares.
Diversification is spreading money across multiple assets as opposed to just 1 or 2 (i.e. “don’t put all your eggs in one basket”). So how do you pick those assets? Correlation matrices are a good place to start. Pick symbols that have correlations closer to 0. So if you are long the S&P 500, perhaps … Continued
The correlations that exist between different financial instruments have shifted during the COVID-19 crisis. Correlation measures the degree to which securities/assets move in relation to each other. For example, when two underlying securities are positively correlated, that means they move in the same direction to varying degrees. When two securities are negatively correlated, that means … Continued