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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
 STCE   -0.166123 
 VPL   -0.166124 
 EGGY   -0.166138 
 SOXX   -0.166150 
 TTAM.IX   -0.166286 
 EIS   -0.166314 
 MYO   -0.166319 
 XPER.IX   -0.166321 
 VZ   -0.166325 
 BRCC   -0.166374 
 CGTL.IX   -0.166376 
 LZMH.IX   -0.166383 
 USO   -0.166393 
 IMXI   -0.166438 
 MIND.IX   -0.166541 
 USO.IX   -0.166554 
 NCLD   -0.166563 
 NUWE   -0.166586 
 GASZ   -0.166602 
 OPNW   -0.166672 
 KYNB   -0.166714 
 TYYY   -0.166740 
 MGX   -0.166744 
 AIMG   -0.166807 
 KPDD   -0.166811 
 
20751 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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