Show only pairs with correlation between +/- [ ] (lowest) and +/- [ ] (highest) - This screening device sets the limits of correlation coefficients to be reported.
This study produces Correlation Coefficients that succinctly express the historical relationship between any two markets, which are expressed as numerical values between -1.00 and +1.00. These reflect the positive or negative extent to which members of a given pair are related. A strong negative reading suggests that one member of the pair consistently moves up while the other moves down. Conversely, a strong positive reading suggests there has been a tendency for the pair of markets to move in a similar direction and with similar robustness. A correlation coefficient close to 0.00 implies that the two markets have exhibited random association. The screening entries reflect absolute values so, depending upon your response to the prompt about positive or negative results (a few lines below), they might apply to either or both. For example, use the default correlation coefficient filter of between 0.5 and 1.0 to view all market pairs whose correlation coefficient is between +0.5 and 1.0 and/or between -0.5 and -1.0. This default value would exclude market pairs whose correlation values range from zero (0) to +/-0.4999. If you are seeking highly correlated pairs, consider narrowing the search further be raising the lower value to at least +/-.7 (to remove pairs with less meaningful correlations) and the upper value to +/-.95 (to eliminate pairs that are so highly correlated that there is little opportunity for profit). If you are seeking non-correlated pairs to include in a risk-adverse portfolio mix, consider narrowing your search to only pairs with a correlation coefficient between, say, 0.0 and .1 (for minimal correlation) or 0.0 and .3 (for low correlation). This filter can be combined with the Signal Line filter to further narrow your results. To show all results without any filtering of correlation values, enter 0 (zero) for the low and 1 (one) for the high. Close Window [X] |