Friday, September 23, 2011

What are two stocks that are correlated to a third stock?

For a homework assignment for stat class, we need to test one stock price to see if it is correlated with two other stock prices. What are some examples of stocks that affect other stocks?|||Any 3 stocks in the same industry will tend to have price movements that will be correlated to some degree. If they are the 3 biggest companies in the industry, even more so. They won't be perfectly correlated, of course, and some unusual company-specific price move may make one of them move out of synch with the others.





Try Chevron, Exxon and BP for example (CVX, XOM, BP).

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