Posted: June 16th, 2022

Project | intro to data mining

group 9 : Clustering with correlation coefficient

This presentation / project is about correlation coefficients used as the clustering measure.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

File needed to see the correlation coefficients and bi-monthly returns:

returnAstcBiMonthlyEG1.mat

Address in the presentation the following:

1) Given correlation coefficient from https://mathworld.wolfram.com/CorrelationCoefficient.html

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

A) What is the meaning of correlation coefficient between the two set of stocks prices?

B) Show why the correlation coefficient between the set of prices A and set of prices B is the same as the correlation coefficient between the set of prices B and set of prices A.

2) After loading returnAstcBiMonthlyEG1.mat in Octave, you’ll have stocks with bi-monthly returns of above 0.009 : 

CC -> correlation coefficients between the stock returns,
RTRS ->  bi-monthly returns (rows) for 412 stocks (columns)

A) Comment the correlation coefficients based on bi-monthly returns among 412 stocks shown in the figure  P5_CC_eg1.pdf

B) Assuming that clusters are created by putting all the stocks whose correlation coefficients among all the pairs are greater than 0.5, comment on the following cluster distribution : 302 clusters with only 1 stock,  28 with 2 stock,  6 with 3,  4 with 4, 1 with 5,  1 with 6 , and  1 cluster with 9 stocks in it.

C) Explain why it would be good to pick just one stock from the cluster for the diversified portfolio.

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Open chat
1
Order through WhatsApp!
affordablepaperwritings.com
Hello!
You Can Now Place your Order through WhatsApp

Order your essay today and save 30% with the discount code DISCOUNTS2022