Tutorial: Using Correlation Analysis to Identify Inputs
Run Correlation Analysis for a Single Stock
Create a Time Series Prediction
Create a Prediction with Pre-lagged Inputs
Run Correlation Analysis for an Entire Group
Run Correlation Analysis for a Single Stock
i Tutorial Task
Run correlation analysis on a Close field.
In this task, we will run a correlation analysis between the Close field of one stock and the Close fields of multiple other stocks.
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Step-by-step Instructions
1. Select Analyze Correlations… from the context menu for “Bellsouth Cp” in the Portfolio View.
Ä Note: If you do not have “BellSouth Cp”, “MBNA Cp”, “DJ Industrial Avg”, and “S&P 500 Index” in your portfolio, you will want to import them first.
Figure 1. Selecting “Analyze Correlations…”.
2. On the dialog labeled Select a Field to Analyze, select the “Close” field and press OK.
3. On the first page of the Correlation Analysis Wizard, select Determine if other fields may be good inputs for predicting this field and press Next.
4. On the Analysis Fields page, set Preprocessing to “Percent Change”, select “My Portfolio” and press the Add Field from Selection… button.
Figure 2. Location of “Add Field from Selection…”.
5. On the dialog labeled Select a Field Name to Add, select the “Close” field and press OK.
Figure 3. Result of adding Close field.
6. On the Analysis Fields page, press Next.
7. On the Analysis Options page, look over the options and press Finish.
8. Let TradingSolutions perform the requested task.
9. Examine the Modify Field Dialog: Correlation Analysis page.
Ä Note: For more information about the contents of this page, including the meaning of the confidence values, see the Notes.
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