[2017-DEC] Information Services Group, Inc. III Correlation Histogram

X axis : Stocks Price Correlation Coefficient
Y axis : Quantity of stocks

1,000 Day Parameter
3,025 NASDAQ Stocks Price

Analysis
This stock mode of correlation coefficient is -0.4
In other words, the correlation coefficient of the other stocks is the many levels -0.4
Kurtosis of the distribution of the correlation is -1.17, and skew is 0.47

Correlation Histogram Type Description

Zero Correlation Histogram

• The stock pair is concentrated in the correlation coefficient zero.
• Case the diversification, Zero type will Overweight of the portfolio.
• And, Zero type are often low volatility.

Type A Correlation Histogram

• The stock pair is concentrated in the plus high correlation coefficient and minus high correlation coefficient.
• The A type will underweight of the portfolio.
• This is not a normal distribution.

Type B Correlation Histogram

• The stock pair is concentrated in the plus high correlation coefficient.
• The B type will underweight of the portfolio.
• This is not a normal distribution.

Type C Correlation Histogram

• The stock pair is concentrated in the minus high correlation coefficient.
• The C type will underweight of the portfolio.
• This is not a normal distribution.

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