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?
Correlation calculator
- Thread starter SoCalOptionsWriter
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https://www.buyupside.com/calculators/stockcorrelationinput.php
I just used google search, but this seems to be doing the work you need.
I just used google search, but this seems to be doing the work you need.
Cool. Thanks.
I use this one https://www.buyupside.com/calculators/stockcorrelationinput.php
But many thanks to @TrAndy2022
I will use that one. Huge gem thanks buddy.
But many thanks to @TrAndy2022
I will use that one. Huge gem thanks buddy.
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:
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.
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:
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.
This website does not mention what look-back period is used to calculate the correlation. One month? One year? The entire available price history?