Reply To: Cross Correlation Tool

Optuma Forums Optuma General Discussion Cross Correlation Tool Reply To: Cross Correlation Tool

#68553
Louis
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Hi. I am very interested in the cross correlation tool. I understand it helps explain if one security leads or lags another. I just don’t understand how to interpret the tool.

Please see the attached chart. I can visually see the blue line peaks ahead of the black line though not on the way up from the March 2020 low. I can see there is a .5 correlation, so a moderate one,  21 weeks ahead and 22 behind. Please help me to interpret what this tool is saying about the relationship of the second security in blue to the first security in black.

thank you,

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