Introducing the DARWIN Correlation Test

Fancy knowing what DARWINs are correlated to each other? Wait no more! Introducing the new Darwinex Correlation Test.

Let’s look into our friend Integracore2’s DARWIN PLF to gain a better insight into the new correlation feature.

1. The correlation matrix

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As you can see in the screenshot above, a new “Correlation” tab has been added to the DARWINs’ report. It contains a matrix with all the DARWINs that show positive correlation with the DARWIN you are reviewing.

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In our example, PLF has positive correlation with DARWINs LZL, PFL, IVH, FLP, LVO, FUI, ZUV, BMD, CNX and IQU (arranged in descending order by correlation).

2. Correlated DARWINs & DarwinIA prizes

This new correlation tool has a major impact on DarwinIA: going forward, amongst DARWINs highly correlated to each other, only that with the highest level & D-Score will be eligible to participate in DarwinIA. Now, what does too highly correlated mean exactly?

  • If a Provider submits 2 DARWINs with a correlation higher than 0.5, only the one with the highest level & highest D-Score is eligible for DarwinIA.
  • If 2 Providers submit DARWINs with positive correlation higher than 0.7, only the DARWIN with the highest level & highest D-Score is eligible for DarwinIA.

Further to our PLF example, the second row of the correlation matrix shows which of the correlated DARWINs are currently eligible for DarwinIA’s prizes this month (PLF, for example, is not eligible for DarwinIA because it has a 0.98 correlation with LZL, which has a higher level & score than PLF).

Correlation is re-calculated on a daily basis, so the fact that a specific DARWIN is not eligible to take part in DarwinIA today does not mean that it won’t be eligible tomorrow!

3. Comparison between two DARWINs

Right below the correlation matrix, you’ll find a search box.

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Just type any DARWIN’s ticker to find out if it’s correlated with the DARWIN you are reviewing.

The table on the right shows an in-depth comparison between the 2 DARWINs (which one has made more trades, which enters the market first, etc.).

Also, the chart below the search box shows the evolution of the correlation between two specific DARWINs.

We hope you like this new feature! As always, feel free to get in touch at info@darwinex.com for feedback & support.

 

 

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