In this video, we discuss the correlation matrix in-depth, and understand its meaning, importance and usage as a tool to refine your portfolio for better results.
Investopedia link for Correlation - www.investopedia.com/terms/c/...
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Chapters
00:00 - Coming up
00:27 - Introduction
01:07 - Definition of correlation matrix
01:33 - Importance of Correlation matrix
03:39 - Making a portfolio on AlgoTest
03:51 - correlation coefficient explained
05:01 - Backtest result for portfolio
05:36 - Optimizing the portfolio using the correlation matrix
08:43 - Backtest result of fully optimized portfolio
10:29 - Summary and Conclusion
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Disclaimer:
This video was created by AlgoTest for the sole purpose of education and demonstration of the AlgoTest futures and options backtesting platform as well as the live/paper deployment service that it provides. This is NOT financial advice and is also NOT a strategy recommendation. Please do your own backtesting, research and thorough due diligence before investing or trading in the stock market.
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Past performance does NOT guarantee of future results. For more information, visit algotest.inc