TRAI — Daily Quant Day-Trading Research

Correlation & cluster analysis

Pearson correlation of daily log returns over the last 60 sessions; average-linkage hierarchical clustering on distance 1−ρ, cut where average intra-cluster ρ ≥ 0.5. The effective number of independent bets (participation ratio N² / Σρ²) tells you how many genuinely different positions a list really contains.

Computed: Nov 6, 2026, 5:34 PM ET · Data through: 2026-11-06
Source: Yahoo Finance public chart API, daily bars (1y).

Universe names

156

with 60 clean daily returns

Avg pairwise ρ

0.112

60-day window

Effective bets (universe)

11.0

out of 156 names

Clusters (avg ρ ≥ 0.5)

groups of 2+ names

Today's buckets: how many independent bets?

Bucket	Names	Effective bets
Long momentum	3	2.9
Short momentum	1	1.0
Mean reversion	0	—

From run 2026-11-06_postclose_2026-11-06T21-49-57-619Z. If 6 picks have 2.5 effective bets, size them like ~2–3 positions, not 6.

Rolling 60-day average pairwise correlation (higher = market moving as one; macro-driven tape)

Rolling effective number of independent bets across the whole universe

Sector correlation heatmap (average pairwise ρ)

	Semis	Software	Internet	Hardware	Consumer	Consumer	Financia	Healthca	Energy	Industri	Material	Telecom	Crypto/H
Semis	0.66	0.15	-0.03	0.41	-0.05	-0.33	0.15	-0.06	0.03	0.21	0.06	-0.27	0.35
Software	0.15	0.33	0.15	0.14	0.08	-0.07	0.15	0.05	-0.04	0.03	-0.03	-0.15	0.16
Internet/Media	-0.03	0.15	0.35	0.03	0.27	0.20	0.28	0.18	-0.17	0.03	0.08	0.16	0.21
Hardware	0.41	0.14	0.03	0.27	0.02	-0.16	0.16	-0.01	0.04	0.14	0.03	-0.15	0.21
Consumer Disc.	-0.05	0.08	0.27	0.02	0.33	0.31	0.29	0.20	-0.17	0.09	0.13	0.19	0.15
Consumer Staples	-0.33	-0.07	0.20	-0.16	0.31	0.53	0.17	0.25	-0.06	0.04	0.13	0.35	-0.09
Financials	0.15	0.15	0.28	0.16	0.29	0.17	0.43	0.20	-0.13	0.16	0.14	0.05	0.26
Healthcare	-0.06	0.05	0.18	-0.01	0.20	0.25	0.20	0.35	-0.09	0.02	0.08	0.07	0.10
Energy	0.03	-0.04	-0.17	0.04	-0.17	-0.06	-0.13	-0.09	0.64	0.02	-0.05	0.01	-0.18
Industrials	0.21	0.03	0.03	0.14	0.09	0.04	0.16	0.02	0.02	0.14	0.08	-0.03	0.11
Materials/Utilities	0.06	-0.03	0.08	0.03	0.13	0.13	0.14	0.08	-0.05	0.08	0.12	0.00	0.13
Telecom	-0.27	-0.15	0.16	-0.15	0.19	0.35	0.05	0.07	0.01	-0.03	0.00	0.81	-0.08
Crypto/High-beta	0.35	0.16	0.21	0.21	0.15	-0.09	0.26	0.10	-0.18	0.11	0.13	-0.08	0.38

Full correlation matrix (cluster-ordered)

Names are ordered by the clustering dendrogram, so red blocks on the diagonal are clusters of stocks that trade together.

Hover (or tap) a cell to read the pair and its 60-day correlation. Red = positive, blue = negative.

Clusters

#	Size	Avg ρ	Members	Sectors
1	26	0.64	ORCL, ANET, CSCO, WDC, STX, SMCI, DELL, ON, MCHP, TXN, ADI, NVDA, AVGO, MU, MRVL, ARM, ASML, KLAC, AMAT, LRCX, AMD, TSM, CAT, VRT, GEV, ETN	Software 1, Hardware 6, Semis 16, Industrials 3
2	11	0.61	CMCSA, TGT, NKE, MCD, HD, LOW, KHC, KO, PG, PEP, MDLZ	Internet/Media 1, Consumer Staples 6, Consumer Disc. 4
3	11	0.59	BAC, C, GS, MS, BLK, JPM, WFC, KKR, BX, AXP, COF	Financials 11
4	9	0.63	NVO, JNJ, ABBV, AMGN, LLY, GILD, VRTX, PFE, BMY	Healthcare 9
5	8	0.76	MPC, PSX, XOM, CVX, DVN, OXY, COP, EOG	Energy 8
6	8	0.60	NFLX, SPOT, DASH, V, MA, DIS, UBER, BKNG	Internet/Media 5, Financials 2, Consumer Disc. 1
7	7	0.69	ZS, PANW, CRWD, PLTR, SNOW, DDOG, NET	Software 7
8	5	0.71	MARA, RIOT, HOOD, MSTR, COIN	Crypto/High-beta 2, Financials 2, Software 1
9	4	0.62	TTD, WDAY, ADBE, INTU	Internet/Media 1, Software 3
10	3	0.63	HIMS, SOFI, AFRM	Healthcare 1, Financials 1, Crypto/High-beta 1
11	3	0.60	RBLX, QCOM, INTC	Internet/Media 1, Semis 2
12	3	0.81	VZ, T, TMUS	Telecom 3
13	3	0.81	NEE, DUK, SO	Materials/Utilities 3
14	3	0.58	BRK-B, WMT, COST	Financials 1, Consumer Staples 2
15	2	0.84	CEG, VST	Materials/Utilities 2
16	2	0.53	TSLA, FCX	Consumer Disc. 1, Materials/Utilities 1
17	2	0.74	RTX, LMT	Industrials 2
18	2	0.79	SLB, HAL	Energy 2
19	2	0.65	CRM, TEAM	Software 2
20	2	0.67	NOW, GOOGL	Software 1, Internet/Media 1
21	2	0.58	MSFT, AMZN	Software 1, Consumer Disc. 1
22	2	0.60	PINS, SNAP	Internet/Media 2
23	2	0.76	MRK, MRNA	Healthcare 2
24	2	0.58	UPS, UNP	Industrials 2
25	2	0.56	ABT, ISRG	Healthcare 2
26	2	0.69	PM, MO	Consumer Staples 2
27	2	0.66	GM, F	Consumer Disc. 2
28	2	0.52	GE, HON	Industrials 2

24 names are singletons (no partner with average ρ ≥ 0.5) — they behave independently.

Most correlated pairs

V–MA 0.95WDC–STX 0.95HD–LOW 0.95COP–EOG 0.94AMAT–LRCX 0.94XOM–CVX 0.93LRCX–KLAC 0.93PANW–CRWD 0.92AMAT–KLAC 0.92MPC–PSX 0.92GS–MS 0.92TXN–ADI 0.91OXY–EOG 0.91COP–OXY 0.91KLAC–ASML 0.90XOM–COP 0.89MSTR–COIN 0.89OXY–DVN 0.89EOG–DVN 0.88CVX–COP 0.88LRCX–ASML 0.88AMAT–ASML 0.88DUK–SO 0.88COP–DVN 0.88GEV–ETN 0.87

Correlations are estimated from 60 observations and shift over time; a cross-sector cluster (e.g. semis + industrial AI-capex names) reflects a shared theme in this window. Screening/research, not investment advice.