Alpha#75
Type:
alpha_75• Category:indicators
Description
Alpha#75 - correlation comparison.
Parameters
| Name | Type | Description | Required | Default |
|---|---|---|---|---|
dataExp | string | price data | no | |
vwap | string | select the column with VWAP | no | |
volume | string | select the column with volume | no | |
low | string | select the column with lowest prices | no |
Help
Alpha#75: Correlation Comparison Indicator
Description
Alpha#75 is a technical indicator used in investing strategies, specifically in the 101 Formulaic Alphas framework developed by Alpha 101. This indicator performs a correlation comparison and provides insights into market trends.
What does this worker do?
The Alpha#75 indicator calculates the correlation between different price and volume metrics, specifically:
- Price data (
dataExp) - Volume Weighted Average Price (
vwap) - Volume (
volume) - Lowest prices (
low)
By analyzing these correlations, the indicator helps investors identify potential trading opportunities and market trends.
How to interpret the results
The indicator's output can be interpreted as follows:
- High correlation values indicate a strong relationship between the selected metrics, which may suggest a stable market trend.
- Low correlation values indicate a weak relationship, which may suggest a changing market trend.
Parameters
The following parameters are required to use the Alpha#75 indicator:
Parameters List
| Parameter | Type | Description |
|---|---|---|
dataExp | price data | Price data used for correlation calculation |
vwap | string | Column name with Volume Weighted Average Price (VWAP) data |
volume | string | Column name with volume data |
low | string | Column name with lowest price data |
Usage Examples
For a visual guide on how to use the Alpha#75 indicator, please refer to the following GIFs:
Reference
The Alpha#75 indicator is part of the 101 Formulaic Alphas framework, which was introduced in the research paper:
"101 Formulaic Alphas" by Zura Kakushadze
https://arxiv.org/pdf/1601.00991
This paper provides a comprehensive overview of the 101 Formulaic Alphas framework and its application in investing strategies.