Beta coefficient

• 04/03/2017 at 7:28 AM #30777
  Rohan

  Good morning guys,

  Hope you are well. I see some investors use a beta coefficient [Beta = correlation(STD of market/STD of index)], where the correlation and standard deviation is based on returns (close – close[1])/close[1]. I am interested in testing beta in a trading strategy but I need a correlation function with an index.

  Can someone help me build a beta indicator?

  Kind regards

  

  Rohan

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  04/03/2017 at 7:59 PM #30885
  Derek

  Hi Rohan!

  I don’t think this is possible. You can add another market or index to your chart visually but there is no way to make calculations with the second set of data.

  1 user thanked author for this post.

  Nicolas

  

  Derek

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  04/04/2017 at 7:41 AM #30909
  Rohan

  Thanks Derek. Hmmm, too bad. I hoped that the new 10.3’s correlation coefficient might allowed it.

  Would really like to test that since some portfolio management also uses beta a lot.

   

  Thanks anyway 🙂

  

  Rohan

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  04/04/2017 at 6:43 PM #31028
  Derek

  My PRT go-to solution is to create an indicator containing all values from the second index/indicator.

  If opendate=04042017 then

  Index=100

  Elsif opendate=…

   

  If you have enough patience it can help.

   

  

  Derek

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