we have the returns of 3 stocks for the last 4 years and we have to combine only 2 stocks that are less correlated. Example:
stock1=[0.1 0.3 0.22 -.15 ] ;
stock2=[0.3 0.4 -0.13 -0.22 ];
stock3=[0.6 -0.3 0.44 0.05];
So portfolio ={'stock2' 'stock3'} because they are less correlated than any other combination.
Solution Stats
Problem Comments
3 Comments
Solution Comments
Show comments
Loading...
Problem Recent Solvers23
Suggested Problems
-
Matrix with different incremental runs
131 Solvers
-
10240 Solvers
-
find the maximum element of the matrix
538 Solvers
-
644 Solvers
-
Returning a "greater than" vector
276 Solvers
More from this Author12
Problem Tags
Community Treasure Hunt
Find the treasures in MATLAB Central and discover how the community can help you!
Start Hunting!
It would be wise to add additional test cases.
It would be helpful to provide an example in the problem statement.
The problem statement should not commence with a space.
helpful comments, i did add some tests and one example. good lucks!
The less correlated stocks are the ones closest to zero and not to minus one (a correlation of 1 or -1 is still a strong correlation). Please, fix the problem description, what the problem actually wants are stocks that are closest to being inversely correlated.