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
Use Correlation Analysis for an Entire Group
i Tutorial Task
Run correlation analysis on a Close field for group of stocks.
You can perform correlation analysis on a field at the group level. In other words, rather than analyzing the closing price for a specific stock, such as BellSouth, you can perform correlation analysis on the closing prices for all of the stocks in a group by running it on the Close field of the group containing those stocks.
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Step-by-step Instructions
1. Select Analyze Correlations… from the context menu for “Sample Stocks” in the Portfolio View.
Ä Note: If you do not have this group in your portfolio, you should be able to use any group of stocks.
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, press Next.
4. On the Analysis Fields page, select “My Portfolio” and press the Add Field from Selection… button.
5. On the dialog labeled Select a Field Name to Add, select the “Close” field and press OK.
6. On the Analysis Fields page, press Next.
7. On the Analysis Options page, press Finish.
8. Let TradingSolutions perform the requested task.
9. Examine the Modify Field Dialog: Correlation Analysis page.
10. Select one of the entries where Output Field is “Baxter Intl Inc: Close”.
Ä Note: If you do not have “Baxter Intl Inc” as one of the stocks in the selected group, use another stock for this example.
11. Press the Display Correlation for Selected Data Field Only… button. This displays just the correlations for a single output field.
Figure 1. Location of “Display Correlation…” button.
12. Notice that this opens the Modify Field dialog for “Baxter Intl Inc: Close”, opened to the Correlation Analysis sub-page. From here, you can create predictions just like you did in the previous tasks.
13. Press OK to return to the group correlation analysis.
14. Press OK when you are finished with the analysis.