Create an index tracker without stocks in the index

I am trying totrack an index with stocks that are not in the index. How can I do this using the covariance matrix?

Hi Esuabom Dijemeni,

You can create an index with stocks by giving weightage proportionate to their market capitalisation.

You can give a base value of 100 (for example) for the index to represent the total market capitalisation and track the price changes. 

Please follow this link to know the step by step process to create your custom stock index.



Hope this helps!