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Are you also considering time lagged correlations? To me I don't care if a certain stock is correlated by something, I would more like to know which stocks do
by karxxm 4y ago
Are you also considering time lagged correlations?
To me I don't care if a certain stock is correlated by something, I would more like to know which stocks do have correlations or if there are correlations with a time lag
- dhosek 4y agoI was thinking the same thing. To know that ABC follows DEF by x days with 95% accuracy would be a superpower in investing. Of course, the problem with something like this is that using it would, of course, ultimately change the market so that x→0.
- betwixthewires 4y agoThat's not necessarily true, there are positively reinforcing relationships and negative ones too. So, some strategies, everyone does them and the result becomes less predictable, others, everyone does them and the result becomes more predictable. A common modern example of a positive reinforcement is people pumping meme stocks. There are strategies that the more people know about it the stronger it becomes.