Question: Given the covariance matrix below, what is the correlation coefficient between daily returns of SPY and those of TSLA? TSLA SPY AAPL IBM F TSLA

Given the covariance matrix below, what is the correlation coefficient between daily returns of SPY and those of TSLA?

TSLA

SPY

AAPL

IBM

F

TSLA

0.001157

SPY

0.000163

8.95E-05

AAPL

-0.00017

6.7E-05

0.092667

IBM

0.000679

-5E-05

-0.00127

0.08941

F

0.000296

5.08E-06

-0.00305

-0.00737

0.076679

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Can someone PLEASEEEE help me with this project!!!! Research multi-factor linear equity model. You are given historical time series of daily returns of 10 stocks (also given is SP500 series of...

Q:

Please follow the instructions carefully. Write all your code in a Code cell, and your explanations in a Markdown cell. Make sure that your code compiles correctly either by selecting a given cell...

Q:

chose any value (random value), just explain the procedure, for a, b and c. I want to understand procedure thanks Problem description: Assume the risk free rate is 1%. The historical prices of 10...

Q:

Please use Python Jupyter notebook to solve the problem. Show all the detailed steps please. Task 2: VaR Calculations: Multiple Equity Assets Consider the times series of the three stocks DIS, TWTR,...

Q:

In Python: Write a general function to generate random samples from N (4,2) in d-dimensions (i.e., HER and D E Rdxd). Write a procedure of the discriminant of the following form 9:(x) ==} (x ws)????...

Q:

Hi, Please help to calculate without workings to get the answers for question 3 only. Question 3 Analyse the three stocks and the S&P 500 index by answering the following: (a) Compute the time...

Q:

Practice Problems There are two assets A and B with returns ra and r, respectively. Given the covariance matrix as follows. ( I. Find out the composition (weights) of the lowest risk portfolio. Use w...

Q:

Given a covariance matrix 1 2 0 2: 2 5 O 0 0 2 Determine the population principal components Zl, Z2 and Z3. Compute the variance of Zl, Zz and Z3 and the pairwise covariances. Compute the proportion...

Q:

Suppose that the market portfolio consists of only 3 securities and the risk - free interest rate is 8 % . Given the covariance matrix for these 3 securities \ table [ [ 1 2 5 , 7 5 , 1 0 0 ] , [ 7 5...

Q:

Write a program that computes the values in Figures 8.6 and 8.7, i.e., computes the first two raw moments of Rs based on o.l.s. residuals for a given X matrix, and such that the true residuals have a...

Q:

Distinguish a public nuisance from a private nuisance. What does nuisance have to do with the common good? Discuss.

Q:

Briefly describe two methods that can be used to evaluate a particular least-squares regression line.

Q:

2 2 9 . Mireille and Mathieu,who have been married for 1 5 years,have two children aged 9 and 1 2 . Mireille chose to work part time and earns an income of $ 2 0 , 0 0 0 . She has not contributed...

Q:

What characteristic is changed by using 3 D Model Views? Select the correct option. a . Color b . Rotation c . Size d . Outline

Q:

5. Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market wage rates necessary to get their oranges picked. Some are turning to $100,000 to $300,000...

Q:

3. What factors determine the elasticity of resource demand? What effect will each of the following have on the elasticity or the location of the demand for resource C, which is being used to produce...

Q:

4. Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firms capacity. If he adds one more worker, the firms total monthly revenue will increase from $50,000...