Correlation – The Need For ‘Stationary’ Data

How correlated are Intel and Google’s stock ┬áprices? The below graph shows the daily close of prices of both from mid 2009 to mid 2011. From first impressions, it certainly looks like the two price series move in tandem and should have a high correlation. Indeed it turns out that correlation coefficient of the two … Continue reading Correlation – The Need For ‘Stationary’ Data