Correlations arent consistent
AG
Adam GrossMay 13, 24 | Posted in General
I am seeing inconsistencies btween the correlation in a portfolio matrix vs the stock comparison tool. Is there a different time frame used?
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Dmitry ShevchenkoMay 13, 24
Yes, that's likely due to different timeframes. When calculating correlations, we use the maximum timeframe available. For portfolios, that would be from the inception of the portfolio. For stock comparison, it would be from the date when both stocks started trading. The two dates are probably different in your case. We should probably explicitly mention the used time period on the correlation table to clarify this.
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