Correlation View

Correlation View

Correlation View allows you to see how well each of the ticker symbols in your ChartList charts correlate with another symbol ($SPX by default). This view can be a useful tool for portfolio diversification, helping you to identify securities with a low or negative correlation to the broader market.

The correlation values in this table can range from -1 to +1. A value between 0 and +1 indicates a positive correlation (it is moving in the same direction as the chosen symbol), with 0 indicating a very low correlation, and +1 indicating the two are identical. Values below 0 indicate a negative correlation: the two securities are moving in opposite directions, with a value of -1 indicating the two are exact opposites.

To learn more about the calculation and interpretation of correlation values, please see our ChartSchool article on Correlation.

Accessing the Correlation View

From Your Dashboard, you can select “Correlation” from the “View As” dropdown next to the ChartList you wish to view. Or you can switch to Correlation format from other ChartList formats such as ChartBook, GalleryView or CandleGlance. Select “Correlation” from the “View List As” dropdown.

Using the Correlation View

At the top of the page, you can use the “Select List” dropdown to choose a different ChartList to display.

The correlation table has one line for each chart in your ChartList. In addition to the chart's title, the table shows the ticker symbol and the level of correlation with the chosen symbol (in both numeric and histogram format).

Hover over a ticker symbol to display a mini chart for that symbol. This is a great way to quickly preview multiple stocks on the list without ever leaving the Correlation View page.

Click the appropriate icon in the left column of each row in order to display the symbol in a full-scale SharpChart, GalleryView, Point and Figure, or Seasonality chart. Clicking on the chart title itself will display the chart in the workbench with all its annotations.

The average correlation value for all symbols in the ChartList is displayed above the table.

To view the entire ChartList in a different format, such as CandleGlance or Seasonality view, use the “View List As” dropdown above the chart.

Customizing the Correlation View

By default, the Correlation View compares the securities on your ChartList to the S&P 500 Index ($SPX). You can choose a different symbol by entering it in the “Correlate with” box above the table, and pressing the green “Go” button.

Initially, the Correlation View shows the average correlation over a 20-day period. You can use the Period dropdown above the table to display correlation data for the symbols over a different time period, ranging from 5 days to 10 years.

The Correlation View also has the same functionality as most of the tables on our site:

  • To sort by a different column, click the double-arrow icon next to the column header.
  • To sort by multiple columns (e.g. sort by column A, and within each value for A, sort by column B), click the first column, then hold down the shift key while selecting the second column.
  • You can also search the items in the list by typing in the Search Table box at the top right.

Editing the ChartList

While Edit View provides the most comprehensive set of editing tools for your ChartList, very limited editing can be done directly from the Correlation View. You can add or edit notes for the entire ChartList by clicking in the ChartList Notes box at the bottom of the screen. Click the Save button once you've made your changes.

For more editing functionality, use the Edit List button at the top of the screen to load the ChartList in Edit View.

The Delete List and New List buttons can be used to delete the current ChartList and create a new ChartList, respectively.