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CORREL

Type: correl • Category: indicators

Description​

Współczynnik korelacji Pearsona

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
real0stringFirst data seriesno
real1stringSecond data seriesno
timeperiodnumberNumber of periods to use for CORREL calculationno30

Help​

CORREL

Description​

The CORREL worker calculates the Pearson correlation coefficient, a measure used in financial analysis to assess the linear relationship between two data series.

What does this worker do?​

The CORREL worker takes two data series (real0 and real1) and a time period as input, and returns the Pearson correlation coefficient. This coefficient measures the strength and direction of the linear relationship between the two data series over the specified time period.

How to interpret the results​

The Pearson correlation coefficient ranges from -1 to 1.

  • A value of 1 indicates a perfect positive linear relationship between the two data series.
  • A value of -1 indicates a perfect negative linear relationship between the two data series.
  • A value close to 0 indicates no linear relationship between the two data series.

Usage​

To use the CORREL worker, simply provide the required parameters:

  • dataExp: prices data
  • real0: First data series
  • real1: Second data series
  • timeperiod: Number of periods to use for CORREL calculation

Example Use Cases​

The CORREL worker can be used in various financial analysis scenarios, such as:

  • Analyzing the relationship between two stocks
  • Evaluating the correlation between a stock and a market index
  • Identifying potential diversification opportunities in a portfolio

Visual Guide​

For a step-by-step visual guide on how to use the CORREL worker, please refer to the following GIFs:

Full GIF​

[![Full GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)

Short GIF​

[![Short GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)

Additional Information​

The Pearson correlation coefficient is a widely used statistical measure in finance. However, it is essential to note that correlation does not imply causation. A high correlation between two data series does not necessarily mean that one causes the other. Additionally, the CORREL worker assumes a linear relationship between the data series, which may not always be the case. Therefore, it is crucial to consider other factors and perform further analysis when interpreting the results.