Correlation Oracle
Discover the hidden bonds between securities of Middle-earth's markets
Understanding Correlations
Correlation (-1 to +1)
Measures how closely two securities move together. +1 means perfect positive correlation, -1 means perfect inverse, 0 means no relationship.
Stability (0 to 1)
How consistent the correlation has been over time. Higher stability means more reliable, lower means the relationship is erratic.
Adjusted Score
Correlation × Stability. This penalizes unstable correlations - a 0.8 correlation with 0.5 stability is less useful than 0.6 correlation with 0.9 stability.
Regimes
Index-Tracker: Moves closely with indices. Partial: Some index influence. Independent: Marches to its own drum.