NexusFi: Find Your Edge


Home Menu

 





Creating multi-sector correlations


Discussion in Sierra Chart

Updated
    1. trending_up 1,512 views
    2. thumb_up 2 thanks given
    3. group 2 followers
    1. forum 2 posts
    2. attach_file 0 attachments




 
Search this Thread

Creating multi-sector correlations

  #1 (permalink)
 
DarkPoolTrading's Avatar
 DarkPoolTrading   is a Vendor
 
Posts: 1,036 since May 2012
Thanks Given: 1,244
Thanks Received: 1,326

Hey all,

Im trying to create a chart for plotting the correlations and relative strength for baskets (sectors) of stocks. This is just using end of day data and I do not have access to an actual symbol/instrument representing each sector.

So what im hoping to do is somehow group all finance, resource, health, etc stocks. Then create an index that represents each basket/sector. Then ultimately plot each sector against each other on one chart to compare relative strength.

Im not entirely sure if this is even possible in Sierra, but if it is please could someone explain what will be required or point me in the right direction to get started.

Many thanks for any suggestions.

Diversification is the only free lunch
Follow me on Twitter Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Are there any eval firms that allow you to sink to your …
Traders Hideout
Exit Strategy
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
Deepmoney LLM
Elite Quantitative GenAI/LLM
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
39 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
GFIs1 1 DAX trade per day journal
18 thanks
The Program
18 thanks
  #2 (permalink)
 swandro 
England
 
Experience: Advanced
Platform: SierraChart
Posts: 70 since Jul 2009
Thanks Given: 9
Thanks Received: 80

This should be quite easy to do.

Firstly, create a chart with any stock (this will make sense later).

Now create a chart for each of the stocks you are interested in.

For all the stocks in a particular sector, add a Spreadsheet Study and name it, say, Health. This will feed the prices into the spreadsheet.

Add the Health spreadsheet to the very first "dummy" chart. On the sheet that relates to this chart (ought to be Sheet1), put a formula in K3 that adds the closing price from all the other sheets (or whatever calculation you want to use to make the index). So for example, it might be Sheet2!E3 + Sheet3!E3 etc.

Now change the settings so that the K3 subgraph is displayed in Chart Region1. You could set it to display as the main graph, which will hide the dummy stock values.

You can now repeat this for the other sectors.

This may not do exactly what you want but hopefully there are some pointers here to get you started.

Reply With Quote
Thanked by:
  #3 (permalink)
 
DarkPoolTrading's Avatar
 DarkPoolTrading   is a Vendor
 
Posts: 1,036 since May 2012
Thanks Given: 1,244
Thanks Received: 1,326



swandro View Post
This should be quite easy to do.

Firstly, create a chart with any stock (this will make sense later).

Now create a chart for each of the stocks you are interested in.

For all the stocks in a particular sector, add a Spreadsheet Study and name it, say, Health. This will feed the prices into the spreadsheet.

Add the Health spreadsheet to the very first "dummy" chart. On the sheet that relates to this chart (ought to be Sheet1), put a formula in K3 that adds the closing price from all the other sheets (or whatever calculation you want to use to make the index). So for example, it might be Sheet2!E3 + Sheet3!E3 etc.

Now change the settings so that the K3 subgraph is displayed in Chart Region1. You could set it to display as the main graph, which will hide the dummy stock values.

You can now repeat this for the other sectors.

This may not do exactly what you want but hopefully there are some pointers here to get you started.

Thanks for the help.

I have 142 stocks which I will be dividing up into sectors. So this whole process is probably going to take quite a while to get working. I'll give it a go over the weekend and reply here if i've got any further questions.

Thanks again.

Diversification is the only free lunch
Follow me on Twitter Started this thread Reply With Quote
Thanked by:




Last Updated on March 18, 2015


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts