Online stock screener to find stocks that are negatively correlated to another stock/index?
How do you find negatively correlated stocks?
To determine whether there is a negative correlation between two stocks, run a linear regression on the individual stock prices by having one stock serve as the dependent variable and the other as the independent variable.
What stocks are negatively correlated to the market?
Examples of Negative Correlation Assets
Oil prices and airline stocks. Gold prices and stock markets (most of the time, but not always) Any type of insurance payoff.
How do you find a correlated stock?
To find the correlation between two stocks, you’ll start by finding the average price for each one. Choose a time period, then add up each stock’s daily price for that time period and divide by the number of days in the period. That’s the average price. Next, you’ll calculate a daily deviation for each stock.
Which stocks are the most correlated to S&P?
Large-cap stocks such as Microsoft or Apple generally have a high positive correlation to the S&P 500, or nearly one.
What is negatively correlated to S&P 500?
A negative correlation means that they tend to move in exactly opposite directions. For example, when returns on some asset classes were declining, returns on others were gaining, or perhaps declining less. The chart below shows the range of correlation assets to the S&P 500 index over the past 20 years.
What sectors are inversely correlated?
Although 4 of 9 sectors have a correlation of 0.93-0.94 with S&P 500, no pair of individual sectors exceeds 0.87. Utilities is by far the least correlated sector to all others.
Summary.
| Ticker | Sector |
|---|---|
| XLI | Industrials |
| XLB | Materials |
| XLK | Technology |
| XLU | Utilities |
What stocks are inversely correlated?
Airlines, trucking companies, and aerospace companies all respond poorly when the price of oil increases. When the price of fuel goes down, these stocks go up. There is also a strong negative correlation between the financial industry and industries that increase their profits when interest rates go down.
What is perfectly negatively correlated?
Correlation is expressed on a range from +1 to -1, known as the correlation coefficent. Values below zero express negative correlation. A perfect negative correlation has a coefficient of -1, indicating that an increase in one variable reliably predicts a decrease in the other one.