In the previous video, we looked at beta-weighting our deltas to a particular index, the SPY in that case. In addition to beta-weighting, it is also important to look at the correlations between underlyings to get a sense of how valid that beta number is. It is also useful to see if we are overweighting our portfolios to a specific underlying or sector. In this video, I will show a simple way to calculate the correlation between stocks using Python.
Beta-weighted Deltas: https://youtu.be/PNnOCKHJh8U
Github: https://github.com/kpmooney/numerical_methods_youtube/tree/master/correlation
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