|
PureBytes Links
Trading Reference Links
|
Be careful with correlation. A positive correlation coefficient really
means that if one value is above its average, so is the other. The
reverse would be true for negative correlation.
Nick
> -----Original Message-----
> From: sptrader [SMTP:sptrader@xxxxxxxxxxxxx]
> Sent: Thursday, October 22, 1998 11:36 AM
> To: RealTraders Discussion Group
> Subject: Re: GEN/MKT: What is this called?
>
> I think you may want a correlation indicator; If one market is
> perfectly
> correlated to another the value is 1, otherwise it is a fraction of 1;
> Steve
>
> -----Original Message-----
> From: UG <ug@xxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Thursday, October 22, 1998 9:27 AM
> Subject: GEN/MKT: What is this called?
>
>
> >
> >Is there an indicator that measures movement with respect to the
> market?
> >Not Beta; that's volatility. I'm looking for something that would
> vary
> >in value from a negative number to a positive one; a value of 1 would
> >indicate the security rises in price when the market rises in price,
> and
> >about the same amount. A value of -2 would indicate the security
> drops
> >in price when the market rises (and vice versa), and about double the
> >amount.
> >
> >Does such an indicator exist?
> >
> >--
> >=====================================================================
> ===
> >If God had meant us to be naked, we would have been born that way
> >http://www.unixgeek.com/cgi-bin/motd.pl - PGP email preferred
> >
|