Here’s a scatter plot of MSFT and GOOG and they look pretty correlated

ADM and ERTS aren’t very correlated. By this I conclude there may be some useful information in here.

So I was supposed to do some stuff as a part of a business plan class, but I never got around to it. Just for fun and to keep my skills sharp, I’m going to take a stab at it. First off, I need historical stock data. Instead of paying money for the data, I can download the spreadsheets of individual stocks from yahoo finance. Then I’ll just that to calculate some type of correlation, but I really don’t want to sum up the correlation with one number. I’ll decide after I make some scatter plots.

I think it’s time I start looking at my portfolio again. One thing I would like is to have a statistically diversified portfolio. The problem is that when the market moves up and down, everything else moves up and down. We need to take out correlations to the market. I’ll be looking into this in the future.