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Stock Correlation

Enter a stock, ETF, forex pair or cryptocurrency and the number of days, and the tool ranks every symbol of the same market by how closely its price moved with yours over that period: more than 20,000 US stocks and ETFs, the stocks of the same exchange outside the US, all currency pairs or all cryptocurrencies. Use this free tool to find stocks that move together, check how diversified your holdings are or spot candidates for pairs trading, no sign-up needed. To compare two symbols directly, use the Correlation Calculator.

Symbol
  Period, days
 
 SymbolCorrelation
 FSEC   0.258783 
 RWJ.IX   0.258758 
 IBTO.IX   0.258750 
 SCHD.IX   0.258724 
 FGBI.IX   0.258514 
 BAB.IX   0.258491 
 UNHU   0.258470 
 LGRO.IX   0.258446 
 RZV.IX   0.258160 
 CTVA.IX   0.258128 
 NIHI.IX   0.258128 
 HYBX   0.258072 
 XHLF.IX   0.258049 
 MDY   0.258044 
 RPAY.IX   0.258020 
 IREZ   0.257998 
 RMOP.IX   0.257860 
 DD   0.257788 
 DD.IX   0.257788 
 FDL   0.257765 
 XLBX   0.257743 
 JMTG   0.257706 
 KEY-PL   0.257654 
 CTVA   0.257654 
 PRMB.IX   0.257647 
 
20725 rows returned

How to Use Stock Correlation

A correlation close to +1 means two stocks have moved together, close to -1 that they have moved in opposite directions, and close to 0 that there has been no relationship. The top of the list therefore shows the stocks that behaved most like yours: often companies from the same industry, ETFs that hold the stock, or leveraged funds that track it. If several of your holdings rank near the top of each other's lists, your portfolio is less diversified than it looks. Correlation changes with market conditions, so compare a short period such as 30 days with a longer one such as 250 days before you draw conclusions.


Stock Correlation FAQ


What is stock correlation?

Stock correlation measures how closely the prices of two stocks move together. It is expressed as a correlation coefficient between -1 and +1.

How do you read the correlation coefficient?

A value of +1 means the two prices moved in the same direction all the time, -1 that they always moved in opposite directions, and 0 that there was no relationship. Values above 0.7 are usually seen as a strong positive correlation and values below -0.7 as a strong negative one.

How is the correlation calculated?

The coefficient is calculated from the daily closing prices of the two symbols over the number of days you choose, up to 450 days.

Which symbols are compared?

A symbol is compared with all the symbols of its market: a US stock or ETF with more than 20,000 US stocks and ETFs, a stock from another exchange with the stocks of that exchange, a forex pair with all currency pairs, and a cryptocurrency with all cryptocurrencies.

Why does correlation matter for diversification?

Stocks that are strongly correlated tend to rise and fall together, so holding several of them adds little diversification. Combining assets with a low or negative correlation can reduce the swings of a portfolio.

Does correlation stay the same over time?

No. Correlation changes with market conditions, so a pair can be strongly correlated over 30 days and weakly correlated over a longer period. Compare several periods before you rely on it.

How do I find the correlation between two specific stocks?

Use the Correlation Calculator: enter the two symbols and the number of days, and it shows their correlation coefficient.

Is the Stock Correlation tool free?

Yes. The Stock Correlation tool and the Correlation Calculator are free, and you do not need to sign up. Enter any stock, ETF, forex pair or cryptocurrency.




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