Pair Correlation Study

By Samantha Baltodano

What Is the Pair Correlation Study?

The Pair Correlation study calculates the Correlation coefficient between the prices of the securities in the composite symbol (e.g., "IBM+GOOG").

Note that in composite symbols, instruments are ordered alphabetically, and Pair Correlation calculates the coefficient for the first two instruments only. E.g., if the composite symbol "C+BAC+AMD" is entered, it will be normalized to "AMD+BAC+C", and the coefficient will be calculated for AMD and BAC.

Pair Correlation is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.

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