{"id":562,"date":"2021-02-12T12:33:36","date_gmt":"2021-02-12T12:33:36","guid":{"rendered":"http:\/\/140.82.46.175\/?page_id=562"},"modified":"2021-02-12T12:57:02","modified_gmt":"2021-02-12T12:57:02","slug":"ratio-and-correlation","status":"publish","type":"page","link":"https:\/\/rotationinvest.com\/how-to\/ratio-and-correlation\/","title":{"rendered":"Ratio and Correlation Tool How To Guide\u200b"},"content":{"rendered":"\t\t
Main Description<\/strong> Numerator Ticker<\/strong> Denominator Ticker<\/strong> Ratio Output = Numerator Ticker Price \/ Denominator Ticker Price<\/em><\/p> Correlation Output = Correlation between numerator ticker and denominator ticker<\/em><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t Start\/End Simulation Date<\/strong> The tool outputs fully interactive charts showing day to day equity (not just monthly data), day to day draw down, transitions from stock to cash symbol, a summary of performance, % allocation per symbol, annual\/monthly performance table, and a full trade list.<\/p> Outputs include: Ratio between the 2 input funds, correlation between the 2 input funds, and a price chart comparing the 2 input fund returns (with dividends) over the period selected.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t Downloads that are available are a full trade spreadsheet, day by day strategy equity spreadsheet (which can be uploaded to any of our portfolio combination tools), and a list of settings you used to create the results. You may also download an HTML report with fully interactive graphs that you can save and send to others.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":" Main Description The Ratio and Correlation Tool allows the user to enter 2 tickers. The tool will then calculate the ratio of those 2 tickers, and the correlation between those 2 tickers. Settings Numerator Ticker Enter the ticker that you would like to see the ratio and correlation of. The Numerator will be the ticker …<\/p>\n
The Ratio and Correlation Tool allows the user to enter 2 tickers. The tool will then calculate the ratio of those 2 tickers, and the correlation between those 2 tickers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\tSettings<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Enter the ticker that you would like to see the ratio and correlation of. The Numerator will be the ticker that the tool divides the price of the denominator ticker.<\/p>
Enter the ticker that you would like to see the ratio and correlation of. The Denominator will be the ticker that the tool divides the numerator ticker by.<\/p>
The date values to start and end the simulation. If a ticker is unavailable for some of the date range entered the default behavior will be to only test the dates when all tickers are available.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
Rolling Correlation Length<\/strong>
The number of trading days that the correlation between the 2 input stocks is calculated over. A large number will use more the stock’s history to calculate the correlation, and a smaller number will show the more recent stock price correlation.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\tOutputs<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Downloads<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t