| The standard statistical method of comparing two sequences {xi} and {yi} is to compute the correlation |
| ρ = E((xi - μ(x))⋅(yi - μ(y))) / (σ(x)⋅σ(y)) |
| where μ(x) is the mean value (average) of the xi, σ(x) is the standard deviation of the xi, and E(zi) is the expected value of the zi. (So for example, μ(x) = E(xi).) |
| If ρ = 1, the x and y behave exactly alike; if ρ = -1 they behave in the opposite way. |
| Here are the ρ values for these stocks. |
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Retrun to Address correlation.