Correlation Indicator or Comparison Tool

[Tootall]

Hello All. I am looking for a correlation indicator or any kind of strategy that I can use in comparing two stocks together, that'd accurate to a good degree. Typically one of the stocks has already made a price gap, so just trying to anticipate the direction of a similar stock. Both stocks are in the same sector and Industry.

 

[halcyonguy]

Hello All. I am looking for a correlation indicator or any kind of strategy that I can use in comparing two stocks together, that'd accurate to a good degree. Typically one of the stocks has already made a price gap, so just trying to anticipate the direction of a similar stock. Both stocks are in the same sector and Industry.

your request is too vague. you will have to thoroughly describe formulas , using price parameters , to determine if there is correlation or not

couple of ideas,
look at the % price change of stock1. see if stock2 moves within a tolerance of the stock1 %

if stock1 has a gap, look for stock2 to have a gap within x bars