I write All Stacks Developer blog to share best practices about using Google Sheets, Google Apps Script, Google Data Studio, and software development.
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I am using the correlation matrix - and it is really great. These are not easy to find and not so easy to put together - I have found. I really am in need of a stock return correlation matrix - as this is a stock "price" correlation matrix. Any chance for an update to do this or a new product?
Hello, Thank you for your support, it means so much to me. I'm surprised that my article about using google sheets to do correlation analysis had a keen reader like you. At the first thought, I think it's possible to do correlation analysis with the stock return data instead of the stock price data. It depends where you get that return data and how you populate that data in the analysis sheets. If you really need it, feel free to drop me an email with explanation about your use case, i'm sure we can look into it together. Once again, thanks so much! Have a great day!☕️ 🎉
Sure of course, you are welcome - the sheet and the programming behind it is great. I struggled with it a bit since I am trying to get it to work out about 160 stocks - which I don't think it was really made for, as there are timeout issues etc., but I figured out some work-arounds to make it work. I am a novice to asset/stock correlation, but I have recently read some informative articles that report that one should examine return correlation rather than price correlation when working on portfolio allocation / trading a portfolio of assets. So, as an example, return correlation, based on daily prices, can just be the return from the day before compared to the next day - and you get the "daily return percentage" (borrowed this from a webside, "subtract the closing price of an asset on one day from its closing price on the previous day, then divide the result by the closing price of the previous day. " - do that everyday for say a year and then run them against the other assets, just as you do price wise, and you end up with return correlation. Anyway, it seems like something that is very doable by adding a column in the data that calculates the return and then that is used instead of the pricing column - something like that, but I am not sure... Anyway, if you figure it out, let me know please, it would be great, as I can find nothing that does this for more than say 30 assets - which does not work for me and I would guess a lot of people looking to calculate this sort of thing... BTW, this website does this well, but you can only do 30 assets: https://www.portfoliovisualizer.com/asset-correlations#analysisResultsThanks for responding! And for your work!
