US Stock Correlation Ranking

Ranks US individual stock CFDs by how closely their price movements correlate with one another. Choose a base symbol to see up to the top 20 TitanFX-tradable US stock CFDs that move most closely with it, and the top 20 that move most independently of it. Use it to check diversification, find pair-trade candidates, and get a feel for sector dynamics.

Base Symbol

Calculation Period

Tutorial / How to Use

How to Read and Use This Tool

This guide walks through what the correlation coefficient means, how to interpret the rankings, and how to put them to use in real trading.

1Four Terms Worth Knowing First

Before using this tool, let's cover four basic terms.

① Correlation Coefficient (-1 to +1)

A number showing how closely two symbols' price movements move in the same direction. +1 means perfectly in sync, 0 means unrelated, and -1 means perfectly opposite. In practice, individual stocks mostly fall in the +0.2 to +0.9 range.

② Return (Rate of Change)

Correlation is calculated not from raw prices but from the rate of price change. Whether a stock trades at $100 or $10 doesn't matter — what matters is whether the pattern of daily percentage moves is similar.

③ Sector

A grouping of companies by line of business (semiconductors, banks, healthcare, etc.). Stocks in the same sector tend to be affected by the same news and interest-rate environment, so their correlation tends to run higher.

④ Calculation Period and Sample Size

Correlation values change depending on the period examined. A shorter period means a smaller sample size, which makes results more prone to random noise. This tool displays the current sample size (n) at the top of the screen.

FIGURE 1

What Different Correlation Values Look Like in Practice

Even at the same label of "correlation," the relationship between two symbols can look completely different depending on the value. A scatter plot makes this intuitive.

* Horizontal axis = base symbol's return; vertical axis = compared symbol's return. The more the points align along a single line, the stronger the correlation.

2Three Things This Tool Reveals

Spot Overlapping Risk

Holding several highly correlated symbols in the same direction effectively means stacking the same trade multiple times. This helps you notice unintended risk concentration.

Find Pair-Trade Candidates

When two symbols that usually move together temporarily diverge, you can find candidates for strategies that target the gap narrowing again.

Read Sector Dynamics

When the same sector dominates the top of the list, that symbol is riding the broader sector trend — useful material for reading sector rotation.

3How to Read the Two Rankings

CHART 1

Highest Correlation TOP20

The symbols that tend to move most closely with the base symbol. The longer the bar extends to the right, the stronger the co-movement. These are most often symbols from the same sector (semiconductor peers, bank peers, etc.).

How to read: holding the symbols listed here in the same direction concentrates risk instead of spreading it, leading to concentration.

CHART 2

Lowest Correlation TOP20

The symbols that tend to move most independently of the base symbol. Values here are typically small, near-zero positives, and symbols from other sectors tend to appear. The shorter the bar, the more the symbol is driven by factors unrelated to the base symbol.

How to read: the symbols listed here are candidates for combinations aimed at diversification.

⚠️ Individual stocks are generally positively correlated with each otherBecause every individual stock is influenced by overall stock market conditions (interest rates, the economy, risk appetite), correlations between stocks tend to skew positive, and a clear negative correlation is rare. Treat "lowest correlation" as the symbols that move most independently, not the symbols that move in the opposite direction. The color on the left of each row indicates its sector (see the legend at the bottom of the screen).

4How to Use It in 5 Steps

Choose a Base SymbolSelect a symbol you already hold, or one you're considering, as the "base symbol." Symbols are listed by sector.

Check the Highest Correlation RankingSymbols near the top move almost the same way as the base symbol. Check whether any symbols you already hold appear here.

Check the Lowest Correlation RankingThese are candidates if you want to diversify. Note, though, that low correlation doesn't mean safe — each symbol still carries its own individual risk.

Switch Periods to Check StabilityCompare results across 1 week, 1 month, 3 months, 6 months, and 1 year. A symbol that stays near the top across every period reflects a stable, consistent relationship.

Combine With Other AnalysisCorrelation only shows "how similar past movements were." Always weigh it alongside other factors such as earnings, economic indicators, and chart analysis.

💡 Correlation Changes Depending on the PeriodSymbols that show low correlation in normal conditions can suddenly sell off together and see correlation spike when the market drops sharply — the well-known phenomenon where "correlations move toward 1 in a crisis." Keep in mind that diversification benefits tend to weaken exactly when you need them most.

5Dos and Don'ts

✔ Check Across Multiple PeriodsShort-term-only results are more prone to random noise, so also check 3-month, 6-month, and 1-year periods.

✘ Don't Mistake Correlation for CausationA high correlation doesn't necessarily mean "A moved, so B moved." In most cases, it's driven by a shared external factor.

✔ Check for Overlap With Your HoldingsBefore opening a new position, make it a habit to check whether your existing holdings already appear near the top of the ranking.

✘ Don't Decide a Pair Trade on Correlation AloneEven a high correlation doesn't guarantee the price gap will close. Always account for the risk that the divergence keeps widening.

✔ Pay Attention to Sample Size (n)The shorter the period, the smaller the sample size, and the more the numbers can swing. Use the n shown at the top of the screen as a guide.

✘ Don't Assume Low Correlation Means Low RiskA symbol simply moving independently doesn't mean the symbol itself carries less volatility risk.

6Frequently Asked Questions

How is the correlation coefficient calculated?

We calculate each symbol's returns (log rate of change) over the selected period, then compute the Pearson product-moment correlation coefficient between the two series. This looks at how similar the patterns of change are, not the absolute price level.

Why is a negative correlation so rare?

Because every individual stock is strongly influenced by the overall stock market's movement (market conditions). This shared factor pushes correlations between symbols in a positive direction. To find a clearly negative correlation, you'd need to compare against an asset class outside of equities, such as bonds, gold, or currencies.

Is it wrong to combine highly correlated symbols?

Not necessarily. A strategy that intentionally concentrates on a sector you're bullish on is perfectly valid. The problem case is when you think you're diversified but are actually stacking the same risk. This tool is meant to help you notice that kind of unintended overlap.

Which period should I look at?

As a rule, focus on the period closest to your intended holding period. For day trading, 1 week to 1 month is a good guide; for holding over several months, 3 months to 1 year. That said, don't judge from a single period alone — check whether the trend is consistent across multiple periods.

Are the displayed values real-time?

They're calculated from each symbol's actual price data. The backend recalculates at fixed intervals depending on the period (hourly for 1 week; daily for 1 month, 3 months, 6 months, and 1 year), so check the "Last Updated" time shown at the top of the screen.

7Glossary

Correlation Coefficient: A number from -1 to +1 expressing how closely two symbols' price movements track each other. Calculated using the Pearson product-moment correlation coefficient.
Return (Log Rate of Change): A value showing the percentage a price moved over a given period. Correlation is calculated from this series.
Sector: A classification of companies by line of business, such as semiconductors, banks, or healthcare. Symbols within the same sector tend to have higher correlation.
Diversification: The practice of allocating across multiple assets with differing price movements to reduce overall volatility. The effect is greater with lower-correlated combinations.
Pair Trade: A strategy involving two highly correlated symbols where you buy the relatively undervalued one and sell the relatively overvalued one, aiming to profit as the price gap narrows.
Sample Size (n): The number of data points used to calculate the correlation. A smaller sample size means more variability in the value.
Market Conditions: The overall direction and mood of the market. A key driver of the positive skew in correlations between individual stocks.
CFD: Contract for Difference. A trading form that settles the price difference without holding the underlying asset, allowing trades to be opened from the sell side as well.

Calculation method: For each symbol, we calculate the returns (log rate of change) over the selected period, then compute the Pearson product-moment correlation coefficient between the two series. The ranking is sorted by correlation coefficient against the base symbol, in descending and ascending order.

About the data: Calculations are based on each symbol's actual price data. Correlation coefficients are recalculated by the backend at set intervals, so the "Last Updated" time shown at the top of the screen reflects the actual calculation timing. Recent price movements may not be reflected immediately.

Titan FX Research Hub provides content for informational and educational purposes only and does not constitute investment, legal, financial, tax, or any other form of individual advice. This tool does not recommend or solicit the purchase or sale of any specific financial product; all final trading decisions remain your own responsibility. Past price trends do not guarantee future results.