Using Correlations Within thinkorswim | Skinny on Options: Data Science

Note: To find the thinkscript for the thinkorswim platform go to Tastytrade.com and search for the video “Measuring Relationships (w/ thinkscript”. The thinkscript will be available below the video in the summary. Theoretically, we can reduce portfolio volatility by trading groups of stocks. We often discuss the importance of correlation. That is because we can reduce the volatility even further by choosing stocks that have a weak correlation to each other. Graphs were shown which helped to explain the correlation between two different stocks. Mike's thinkscript program was introduced. It can be incorporated into the thinkorswim platform and the link and instructions above helps you to do that. Dr. Data explained how to use it to choose a portfolio with a low correlation. Watch this segment of Skinny on Options Data Science with Tom Sosnoff, Tony Battista and the head of our research team Michael Rechenthin, Ph.D, aka Dr. Data, for a review of the importance of correlation and a fantastic tool you can incorporate into the thinkorswim platform to help you choose stocks with low correlation. ======== tastytrade.com ======== Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

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