Thanks everyone,Pinto I will try to explain correlation to...

Thanks everyone,

Pinto I will try to explain correlation to you.

Lets look at the goldies over 12 months. You can see how they move together. This relationship between each of them can be put into a straight line through what is called regression. If the relationship between two companies is perfect as in when one moves up the other moves up also then they get a correlation r2 = 1.0.

If I make lots of straight lines comparing each of the companies I can then make up a correlation matrix.

These then could be sorted and by using the top 6 correlated companies I made up those charts. It is far from perfect and the next couple of weeks I am going to sieve through the companies that the program can sort from.