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Stock Correlation with its Industry - Change over time
The screen returns the correlation of each stock with its industry for the last 250 and 30 trading days.
It displays five columns:
- Symbol: The stock symbol name
- Close: The close price at the screen date
- Return: The one-bar return of the stock
- Industry Return: The average one-bar return of stocks that belong to the same industry as the current stock
- Correlation 250D: The 250-bar correlation between the stock return and the industry return
- Correlation 30D: The 30-bar correlation between the stock return and the industry return
- Industry: The stock's industry name
This tool can help you identify stocks whose correlation with their industry is decreasing (30d correlation). These stocks used to be highly correlated with their industry as measured by the 250d correlation.
You may also add new columns such as the change in percentage between the medium-term and short-term correlation or compute the correlation of the last 10 days instead of 30.
Besides the stock market, this screen may be applied to ETFs (Exchange Traded Funds). In this case, you can calculate the correlation between an ETF and its segment or group.
Note that the screen takes a lot of time to calculate and that stocks trading under $2 are not displayed and are not included in the market composites that measure the daily return of the different industries.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
