Excel tutorial: calculating covariance and correlation of stock returns

Discusses how to download two companies' stock returns from Yahoo Finance, and calculate (a) the variance and standard deviation of each stock, and (b) the covariance and correlation of the returns of both stocks.
Some good books on Excel and Finance:
Financial Modeling - by Benninga:
amzn.to/2tByGQ2
Principles of Finance with Excel - by Benninga:
amzn.to/2uaCyo6

[@abdisamichirsi1638]

HI THERE, I WAS ACTUALLY WORRIED ABOUT A PROECT OF THE SAME BUT AFTER WATCHING YOUR VIDEO I MUST CONFESS IT IS MORE THAN USEFULL AND AM GLAD. THANK YOU SIR. KEEP THE GOOD WORK

[@antonioromero878]

This popped up randomly on my youtube recommended and I have no regrets.

[@KerouacsAccomplice]

they're listening lol

[@JayHennigan]

You have saved me a world of pain. I leaned a lot, thank you!

[@terrysedmak7298]

Excellent demonstration of calculating covariance and correlation of stocks. I'm working on something right now and this was very helpful. Keep the tutorials coming, they do help us.

[@xj1471]

looking at those stock prices in 2021 makes me cry

[@NircAgis]

Yoooo, youre a life saver man. Haha. Now i dont have to manually go thru all operations and just use the function.

[@jaygandhi778]

can we find covariance for 3 companies??

[@pojungchiang5956]

Shouldn't you be calculating the "sample" variance and covariance since you selected a specific return period?

[@merjenorazmammedova6516]

Thank you so much for the video!

[@soeralecha]

Thank you for simplifying this

[@arinayahya8884]

hi sir, whats the difference of using the formula var and varp?

[@bigjayfitness]

your a boss broski - you always remember that.

[@JenJen-sf5hg]

Hi Why are you using straight ave instead of geo ave? I thought we were supposed to use geo ave for this purpose. Thank you!

[@arwaalzaeem1157]

you are the BEST

[@dheerajkhetan4461]

Wonderful, an eye opener

[@jerrylewis4157]

i just cant wrap my head around that variance calculation. still dont understand what it really symbolises.

[@LM-he7eb]

HOW SPREAD OT THE OBSERVATION ARE FROM THE MEAN

[@scottjeffery7297]

Outstanding presentation!!!! Thank you.

[@SIDESHOW467]

This is EXACTLY what I needed help with.

[@gauravmohan9271]

thank you so much brother. keep growing

[@seemasingh-vf7py]

but correlation is supposed to be between -1 and +1. please explain this 40% correlation

[@sandraarmanious4913]

is it possible to leave the last price for the last date? won't it make a difference in the variance and the correlation?

[@leharjain6718]

Hello sir, nice lecture.
Just wanted to understand, why we have done minus 1 while calculating daily returns

[@jessicanav6064]

Very helpful and clear explanation! Thanks.

[@manishathakur2628]

Thank you sir.. it was really helpful.

[@danielg5085]

Excellent video. However the presenter is wrong when he says that he calculates the returns for the entire year. He excludes January - that's why there are only 11 monthly return cells

[@himanshumahajan9882]

The importance here isn't in the WHAT but HOW he calculated the coVAR and coREL using the formulas. You can make your own table and try it out

[@KhoaTran-le1ot]

Thank you for sharing this !!

[@manishathakur2628]

What if we have to compare 3 companies?

[@surbhikumari7401]

Thanks, it is really helpful.

[@ajayjcd]

hello sir,thanks for your sharing,have you had shared further videos on fundamental analysis, i mean how to take marrket return=rm,and risk free rate and beta to apply capm formula for identifying the intrinsic value of a stock?

[@prashanperera9154]

legend bro !
thank you !

[@richardgordon]

Brilliant! Many thanks. Much appreicated!

[@muhammadumarnazirchishti5155]

KINDLY WILL YOU PLEASE APPLY MERTON MODEL ON THESE ....

[@sulochanavijerathna9600]

Thanks

[@alexnhim0421]

Thanks for this upload.

[@sisilvarghese5240]

That Was Very helpful, Thanks !!!

[@abebeendale554]

IS VERY HELPFUL

[@dbsk06]

so helpful - can you provide the excels for downlaod so we can do this along with you ? think that would help with subscribers

[@fransiska2501]

Thank you so much

[@shadmankhan1969]

THANK YOU SO MUCH

[@jessinvests]

You're amazing, great help. Thank you so much!

[@Unknown-km1pt]

Thankyou very much sir

[@crni5]

How can one calculate Pearsons correlation between a prior year value with current year value?

[@assematalla8740]

Will the covariance change if we replace array 1 with 2?how do i know which one is first?

[@The-Innovators.]

great .....thanks its really helpful

[@Unsanskarinaari]

Extremly helpful👏

[@stanko4333]

what kind of a formula for return is that man. Shouldnt you calculate it with HPR so (new price - old price) / old price

[@dollybegum9146]

Can you please let me know that, how to find the adjusted closing price if it's not given in the website?

[@jamesdgrafton]

Subtract any dividends from the closing price. Adjusted closing is accounting for dividends.

[@swetapatra]

But how can we make correlation a percentage number

[@Hobbytopassion_ManishJain]

Having done so far, what next to enter into the pair trade?

[@themahliman8984]

Thanks Codible!

[@27naysen._.]

frr merci d'avoir aidé young fresne, c qui young fresne ? hey les gars vous le connaissez ? bref merci beaucoup il comprenait rien mais grace a vous il va avoir la moyenne cimer le reuf....

[@ladakhdiaries..3577]

how did u put square in that diff- squad...?

[@menisa4869]

what the difference using this calculate return and using ln

[@caribbeanqueen1389]

Thanks dude!

[@supremecooler]

Thank you

[@varshabaskaran438]

when rs 100 is invested how to do that from returns

[@ic3432]

Hi! Is there a way to do the same thing in R studio instead of excel? thanks!

[@VAPOURprod]

thank you !

[@paulagro9914]

MERCII OMG

[@alexiqbal3578]

Legend.

[@claudiodibernardino8327]

bravo!!!

[@DanishSiddiquidelhi]

awesome...

[@0069yj]

What Covariance use for?

[@battery0631]

awesome

[@erickim2037]

why minuse 1

[@bohu5805]

awsome ~

[@JfTalbot23]

Hi do you offer 1 on 1 tutoring?

[@mohamadasyraf4724]

You fucking legend I love you

[@MosesTheExplorer]

Thanks :D

[@tanmaythakur6172]

bhau tuch bhari mard ahes tu mard

[@investwithvincent6329]

you left out how to calculate covariance manually

[@ahmedmo5358]

Hello Everyone, I want to know more the this is anyone out there who can teach me on how to calculate the indexes and its associated constituents. Please help me!