6. Uncover stocks moving in concert

The heart of Modern Portfolio Theory is the correlation in each pair of stocks, the degree to which one stock moves up or down when another one does (risk preserving), or moves oppositely (risk reducing). Diagoran measures these correlations in residual prices for every pair of your stocks, to calculate return and risk in your portfolio as a whole. Advanced technology in Diagoran sweeps through the correlations of all such pairs of stocks in seconds, yet reveals precision correlograms illustrating times of significant concerted movement. In effect, you could read the score for every instrument in the symphony.

Diagoran also decomposes these correlations to find the most significant underlying structures in your portfolio. As with stock correlations, Diagoran shows you correlations of all pairs of "eigenstocks" representing these deeper structures, as well as correlations of eigenstocks with the daily values of your portfolio. Diagoran also marks extended blocks of time when concerted behaviors of these structures most resemble the recent portfolio movements. In effect, you could prepare for a crescendo that invokes the entire brass section.

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