Well this tool does not cater for splits and dividends :-/ very misleading IMO
Show HN: Find the 10 highest and 10 lowest correlations to any stock
91–100 of 147 posts
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#92Earlier quoted context omitted.
Yes, it makes sense. An asset's correlation are with the broader stock market is quantifiable. See also: https://www.investopedia.com/terms/b/beta.asp
No, it doesn't. The S&P 500 basically is the market. Any meaningful difference between it and the other US investable equities is marginally notable. It's literally asking "How do these roughly 500 plus or minus largest stocks correlate with the largely the same basket of securities?" If you took one company and compared it against the total US market, then you have something at least. If you take the market itself a…
The S&P 500 is for sure not the market. There are thousands of stocks that trade on various exchanges that are not in the S&P 500.
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#93Earlier quoted context omitted.
For anybody who wants maximum risk, and wants to lose money as fast as possible, and in the biggest amounts, there is always the Cryptocurrency Futures market. A bit like Negative Chess...
What's wrong with crypto futures?
Risks...
Leverage + Interest Rate Risk + Liquidity Risk + Settlement + Delivery Risk + Operational Risk + Volatility Risks + Unregulated By Governments And/Or Central Banks + Risks of Error and Hacking + Human Error...
All together! Remember, we are trying to lose money as fast as possible...
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#94HN hug of death. I didn't see any results. Even without shorting intention, this information would be interesting!
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#95Can someone explain why Microsoft has overall the strongest negative correlation with Activision/Blizzard(-0.87) on a 1 year basis. That must be related to the aquistion but I can not figure out how.
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#96Can someone explain why Microsoft has overall the strongest negative correlation with Activision/Blizzard(-0.87) on a 1 year basis. That must be related to the aquistion but I can not figure out how.
If the stocks fairly reliably went in opposite directions simultaneously I think that would cause it??
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#97Can someone explain why Microsoft has overall the strongest negative correlation with Activision/Blizzard(-0.87) on a 1 year basis. That must be related to the aquistion but I can not figure out how.
This is standard for all acquisitions.
- The acquiring company's share price drops because it often pays a premium for the target company, or incurs debt to finance the acquisition.
- The target company's short-term share price tends to rise because the shareholders only agree to the deal if the purchase price exceeds their company's current value.
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#98Couple of random thoughts: - Building things like this is always great. And its a fun site to poke around on. - I would not count on this approach or expect it to be reliable in terms of actually hedging. Correlation, as a measure, has lots of issues. You are boiling down a lot of complex relationships into a single number. While it is convenient for many calculations, there are many problems. For example, many asset…
tl;dr -- All trading strategies work, until they don't. And most people blow up their account, because their trading strategies worked for a long time.
The amount of engineers that discover finance an the incredible, flawless, never-gonna-go-wrong-strategy of being short volatility and feel great about their results for a long time before blowing up their accounts never ceases to amaze me.
Speaking for a friend, of course.
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#99Can someone explain why Microsoft has overall the strongest negative correlation with Activision/Blizzard(-0.87) on a 1 year basis. That must be related to the aquistion but I can not figure out how.
Maybe single day move on acquisition announcement - ATVI up quite a bit on 1/18, MSFT down that day.
As an aside, the methodology says "We calculate the correlations between 2 securities on the daily closing values of the last 20 years. If one of the two securities has not been on the market for so long, we use all available prices to calculate the correlation." - hopefully the author means daily changes, not daily values, because otherwise everything is spurious.
Re: Show HN: Find the 10 highest and 10 lowest correlations to any stock
#100Earlier quoted context omitted.
No, it doesn't. The S&P 500 basically is the market. Any meaningful difference between it and the other US investable equities is marginally notable. It's literally asking "How do these roughly 500 plus or minus largest stocks correlate with the largely the same basket of securities?" If you took one company and compared it against the total US market, then you have something at least. If you take the market itself a…
The S&P 500 is for sure not the market. There are thousands of stocks that trade on various exchanges that are not in the S&P 500.
Reread my comment. I didn't say it was the market. I said it _basically is_ the market. See my comments about FT Wilshire and FTSE Russell.
Regrettably, I shouldn't have bothered replying at all, some HN readers think beta is a fundamental measure. It is not. Many sources get this wrong for some reason.
If you are looking at price movements, you are doing technical, not fundamental analysis.