You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Pairs Trading Strategy Model
- Thread starter Neutral_Al
- Start date
Originally posted by royce09
Does anyone know of a place where I can find lists of correlated stocks?
(leaving aside impactopia.com; I already used my free trial 3 weeks ago)
Thanks Royce
try this-http://www.bullsector.com/
but, read my posts about correlation, if you want trade pairs, or try to build chart like i did.
Originally posted by Bob111
try this-http://www.bullsector.com/
but, read my posts about correlation, if you want trade pairs, or try to build chart like i did.
Thanks for the link Bob. I especially like the combo quote page where you can see the thumbnail charts of the individual sector components. Thanks again, Royce
Originally posted by Gansoro
Can anyone tell me the formula to calculate the correlation coefficient?
How are you calculating the correlations mathematically?
What is the formulas used by Impactopia to calculate the correlation coefficient?
How can I calculate the correlations between various stocks?
If you don't know the formula for correlation, you should be investing in a statistics book immediately. Otherwise, a simple web search will bring up a couple thousand examples of correlation coefficients and how to calculate the same. A good, basic site for statistics information is as follows: http://davidmlane.com/hyperstat/index.html
and specifically on correlation: http://vassun.vassar.edu/~lowry/webtext.html
Impactopia uses returns in their calculations; (someone correct me if I'm wrong on that) they also use one year of back data to do the calculation.
And to calculate the correlations you will need data for each stock data series (you can download data for free from yahoo finance) for the lookback period over which you wish to capture the correlation coefficient.
Royce III
anyone want to help me with long term pairs?
1-5 weeks?
as you may see from my posts, i have some expirience in this field)))) comissions killing me in intraday pair trading + i want to try NYSE stocks. also lack of time for all this stuff. also think about website about it.
BTW-is anyone try to add activity on options as some sort of indicator?
Thank you!
1-5 weeks?
as you may see from my posts, i have some expirience in this field)))) comissions killing me in intraday pair trading + i want to try NYSE stocks. also lack of time for all this stuff. also think about website about it.
BTW-is anyone try to add activity on options as some sort of indicator?
Thank you!
Hi, everyone.
I just got back from vacation. Did not post for a while.
Opened a new position today: DRI/APPB @ R= 0.7589.
High correlation, same industry, better news for DRI today. Any thoughts?
Al
I just got back from vacation. Did not post for a while.
Opened a new position today: DRI/APPB @ R= 0.7589.
High correlation, same industry, better news for DRI today. Any thoughts?
Al