Correlation example - Correlation Coefficient 1 Go to www.finance.yahoo.com and select your company using ticker symbol GE or SBUX in this example

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Correlation Coefficient 1. Go to www.finance.yahoo.com and select your company using ticker symbol. GE or SBUX in this example 2. Then go to historical prices section and choose monthly stock price in the range. Here I choose from 2000 to 2005 3. Download to excel 4. Here I calculate the return measure = (end - begin) / begin 5. Calculate average and standard deviation, also correlation coeffiecient using financial fuction. CORR SPX 6. Then look at the Analyze section below to calculate portfolio return and portfolio risk Date Open High Low Close Volume Adj. Close*Date Open High Low Close Volume Adj. Close* GERET SBRET MKTRET Date Open High Low Close Volume Adj. Close* 3-Jan-05 36.71 36.89 35.85 36 21835260 36 3-Jan-05 63.29 63.34 58.1 59.67 6079440 59.67 -1.3699% -4.3137% -0.021231 3-Jan-05 1211.92 1217.8 1182.16 1186.19 18991200 1186.19 1-Dec-04 35.36 37.75 35.27 36.5 18800472 36.5 1-Dec-04 56.33 64.26 56.29 62.36 3011400 62.36 3.8407% 10.8425% 0.032458 1-Dec-04 1173.78 1217.33 1173.78 1211.92 14494363 1211.92 1-Nov-04 34.1 36.86 33.81 35.36 18420757 35.15 1-Nov-04 52.92 57 52.6 56.26 3031647 56.26 3.6262% 6.3918% 0.038595 1-Nov-04 1130.2 1188.46 1127.6 1173.82 15244657 1173.82 1-Oct-04 33.7 34.4 32.65 34.12 16090485 33.92 1-Oct-04 45.97 53.25 45.29 52.88 3657042 52.88 1.6177% 16.3220% 0.014014 1-Oct-04 1114.58 1142.05 1090.29 1130.2 15719904 1130.2 1-Sep-04 32.79 34.53 32.62 33.58 18122595 33.38 1-Sep-04 42.99 46.29 42.79 45.46 2613404 45.46 3.0247% 5.1341% 0.009364 1-Sep-04 1104.24 1131.54 1099.18 1114.58 13608509 1114.58 2-Aug-04 32.65 33.35 31.42 32.79 15559277 32.4 2-Aug-04 46.87 47.13 42.05 43.24 3834940 43.24 -1.3999% -7.9804% 0.002287 2-Aug-04 1101.72 1109.68 1060.72 1104.24 12602272 1104.24 1-Jul-04 32.4 33.62 31.5 33.25 22230295 32.86 1-Jul-04 44.65 48.4 44.02 46.99 3802461 46.99 2.6234% 8.0478% -0.034291 1-Jul-04 1140.84 1140.84 1078.78 1101.72 14563714 1101.72 1-Jun-04 31 33.49 30.82 32.4 28805304 32.02 1-Jun-04 40.7 44.4 40.62 43.49 3038647 43.49 4.7432% 7.1182% 0.017989 1-Jun-04 1120.68 1146.34 1113.32 1140.84 13811095 1140.84 3-May-04 30.12 31.47 29.55 31.12 20702750 30.57 3-May-04 38.82 41.2 37.03 40.6 3102715 40.6 3.9089% 4.3165% 0.012083 3-May-04 1107.3 1127.74 1076.32 1120.68 15249500 1120.68 1-Apr-04 30.42 31.85 29.8 29.95 32068271 29.42 1-Apr-04 38.14 39.91 36.74 38.92 2987200 38.92 -1.8679% 2.7726% -0.016791 1-Apr-04 1126.21 1150.57 1107.23 1107.3 15831714 1107.3 1-Mar-04 32.69 33.48 28.88 30.52 40261247 29.98 1-Mar-04 37.89 38.74 36.51 37.87 3236652 37.87 -6.1365% 1.2567% -0.016359 1-Mar-04 1144.94 1163.23 1087.16 1126.21 15286347 1126.21 2-Feb-04 33.69 33.99 32.35 32.52 18725515 31.94 2-Feb-04 36.82 39.68 36 37.4 3810936 37.4 -2.7109% 2.1579% 0.012209 2-Feb-04 1131.13 1158.98 1124.44 1144.94 15540000 1144.94 2-Jan-04 31 34.57 30.92 33.63 23093810 32.83 2-Jan-04 33.45 36.81 32.9 36.61 3608915 36.61 8.5289% 10.4041% 0.017276 2-Jan-04 1111.92 1155.38 1105.08 1131.13 17227500 1131.13 1-Dec-03 29.2 31.29 28.78 30.98 20243950 30.25
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This note was uploaded on 12/13/2011 for the course MANAGEMENT 103 taught by Professor Mr.singh during the Spring '11 term at Aristotle University of Thessaloniki.

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