Dear friends, maybe this is a technicism, but why wouldn't a technical analyst use correlations? Wouldn't that count as historic information too, specially when one is managing a portfolio? Keen to hear your reasoning.
Thanks and kind regards
Alex
Hello Alex,
A chartist (technical analyst) can use correlation analysis in order to add instruments to her portfolio with low correlation.If I have a profitable TA strategy, I want to have as many instruments as possible (based on my capital) with low correlation for diversification.