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The concept of the correlation of financial instruments is familiar to many traders. But at the same time, few of them fully understand all the possibilities of this powerful tool of statistical analysis and represent how it can be applied in practice. Meanwhile, correlation is an indispensable tool for successful trading on the strategy of pair trading. Consider why.

So what is the correlation of financial instruments? Correlation is a quantity reflecting the degree of similarity of the graphs of the two instruments. In fact, the introduction of a correlation is an attempt to express the degree of similarity of graphs with just one value, called the correlation coefficient. The value of this coefficient varies from -1 to 1. Where 1 denotes the maximum degree of similarity, when growth on one graph is always accompanied by a similar increase in strength on the other, 0 is the absence of similarity, and -1 is the reverse similarity, when growth on one is accompanied by a proportional fall on the second.

Since the correlation, in fact, reflects only the degree of similarity of the graphs, it is not at all necessary that in the presence of a high correlation coefficient, there will be some real interconnection between the trading instruments. It is quite possible that two graphs for absolutely random reasons will be similar to each other. But if the number of graph points is large enough, i.e. The correlation is statistically reliable, then the probability of accidental coincidence becomes negligible. In this case, we can talk about the existence of a relationship between financial instruments, which ensures the similarity of their schedules.

It is the ability of correlation to measure the interrelation between financial instruments makes it an extremely useful tool for pair trading. Recall what is pair trading. This is a multidirectional trade of interrelated tools, where profit is extracted by playing to eliminate imbalances that periodically arise between these tools. The key word here is “interconnected”, since the success of the strategy will depend directly on how strong and real the relationship between the pair of instruments is. But how to discover interconnected tools among the hundreds of options available on various exchanges? And here the correlation coefficient comes to the rescue. It is enough to sort through all possible pairwise combinations of trading instruments, calculate the correlation coefficients for them and select those from which this indicator will be quite high (for example, more than 0.8).

In order not to do such complex calculations yourself, you can use online services to calculate the correlation. One of the most convenient free services is Correlation of pairs on the site megatrader.org. This service displays pairwise correlation of tools in the form of a correlation table, allows you to specify tool lists and time frames. He is also interested in the fact that, in addition to the correlation itself, it is possible to immediately calculate the weight coefficients for the instruments that make up the pair, and also to plot the spread of the pair. To do this, just click on any correlation value in the table, and the page with a spread graph and automatically calculated weights will open on the site. By the way, these coefficients can be adjusted manually and see how this will affect the spread schedule.

Of course, among the selected pairs with high correlation there will most likely be some percentage of pairs with a false dependence. There are two ways to combat this. First, during selection, it is necessary to pay attention to the fact that both instruments are from the same sector of the economy. In this case, the probability of accidental coincidence is significantly reduced. Secondly, it is worthwhile to trade not with one pair, but with a portfolio of pairs. Then, even if some pairs turn out to be random, their losses will be compensated by the rest of the pairs, and the total return on the portfolio will remain positive.

Keeping up with all of the new tools promising to make our business lives better, more successful, easier, and do it all or less than the other guy’s new thing is impossible. I Googled “new tools for business” and the G-ster returned 863,000,000 entries. Now let’s say that 99% of those are not high quality offers, not from a reliable resource, or simply not a match to my needs. The remaining 1% is many thousands more than I care to read.
My search was not specific enough it’s true, just like most days in the life of an entrepreneur. Most days we don’t go looking for a new app or platform, but between emails from people I like suggesting their favorites, FB ads, and promotional emails from partners; stuff finds us, right?

You know how you go to a new store for one thing and you end up with a cart full of things you didn’t know you “needed?”

Since part of my job is to stay on top of what makes business and marketing more effective and easier, down the rabbit holes of research I go so I can recommend and be up to date on what’s worthwhile.

One of the downsides of research as you probably know is that it is a bottomless pit into which we gladly throw our time. Not only does it serve to educate and entertain us it is an important diversion from the work we don’t like to do.

I wish I were kidding and you know exactly what I mean.

Back to the subject at hand. There are times when a promo for a tool or new software wasn’t something we were actively looking for but does remind us of a problem we have that we’ve been meaning to do something about. Taking out the credit card could be warranted and a smart idea sometimes and others where you are advised to step away from the buy button.

Here are a few questions to ask before you click “buy now.”

1. What problem are you looking to solve? 2. Is this the right tool for the job? 3. Is buying a tool the right answer or is it time to hire a human? 4. What is the ROI you want from your investment? 5. Is it the right expense right now?

Question 1 is the most important thing to get clear on, and the trickster of retail therapy wants you to get it wrong. Let’s say you get a promo for social media scheduling software and you think “This is it. I’m going to finally get out there and be consistent with my social marketing.” Not so fast. Platforms like Hootsuite, Social Queue, Buffer, and the rest are only as good at getting you consistent as you are with filling the pipeline. If you aren’t willing to invest an hour or two per week to load the system up, you’ll be paying for something you don’t use.

The question of the right tool can be simplified by knowing how you like to work. I need an interface that’s pleasing and easy to navigate. Drag and drop suits me fine and I need direction. (This is why I cannot for the life of me figure out Asana.) Customer service is also high on my list of requirements. Do you care if you only get email support within 48 hours, or do you at least want chat at least during business hours?

The answer to #3 might just be a person. It will probably cost you more money, but money shouldn’t be the only deciding factor when you make business decisions. Is the thing you “don’t have” the money for the thing that will allow you to get more clients or do something in half the time? Never make a decision only based on money.

#4 — Will investing in this tool pay you back so the expense is warranted? You have to think about your return on investment whether you are investing money or time in every aspect of running your business. If the software costs you $20 a month but it gets you 5 new leads or saves you 5 hours because you are automating, that’s great ROI.

And finally, is this expense — even if it’s “only” $20/month — the right one right now, or do you need to conserve cash for something down the road with a bigger impact? Resources are precious in our businesses and we can always find a way to spend them. Weigh every expense against the long-term goals you have.

There is no way to keep up with all the cool new apps, software, and platforms that promise to help us be seen. And many of them offer a free trial or don’t have yearly contracts so you can test them with little out of pocket. Before you even start trying things, get clear on the problem that needs solving. There is no use playing with social scheduling software if you have a bookkeeping problem. And, no reason to play with a tool that requires time you don’t have to get the desired result.

Do some homework around your pain points and plans for your business before setting off down that rabbit hole of research and I promise you’ll have more time for the things you love about your business — and some left over for that stuff you don’t.

When it comes to planning corporate events, food can mean make or break. Providing food is important to showing hospitality to guests, especially when they’re company employees. Sharing a meal together is also an ideal setting for employees to build relationships with one another.
Provide too little food, and people are left hungry. Provide too much food, and you’ve spent more money than you needed. And of course, quality of food is essential to the success of an event. When providing food for large numbers of people, like at company parties, hiring a caterer is hands down the easiest option. Here are five tips to help you select a corporate catering company in Salt Lake City.

1. Needs and services: Is your event formal or informal? Are you hosting in the morning or evening? Do you require delivery and set up? Do you need catering staff during the event? When looking for a caterer, make sure they provide all of the services you need.

2. Budget: Know your budget and stick to it. Be sure when getting quotes from caterers that they include all the services you need, not just the cost of food. What do delivery and set up cost? Is dessert provided complimentary or at an additional fee? How much do they charge to staff the event? The total sum of service costs should stay within your budget.

3. Menu samples: Look for a caterer who is willing to provide you with samples of their food. Any accomplished caterer should be ready to show off their work, so don’t be afraid to ask. Sampling food beforehand allows you to know the quality, taste, and presentation that you can expect.

4. Menu flexibility: Most caterers have a standard menu with specific food items and quantities. Experienced caterers know that no two events are equal. As such, they should be willing to adjust their menu to meet your needs.

5. Reviews: In today’s world, online reviews are plentiful. While internet reviews are a good start for knowing a caterer’s quality, they’re not always enough. One person’s idea of five-star services is another person’s three. Learn who some of the caterer’s past clients were and give them a call. It’s likely they’ll review more than a 200-word internet post.

Ultimately, selecting the right corporate caterer in Utah boils down to two things, knowing your needs and finding a caterer to meet them. When doing your research, don’t be afraid to ask the caterer questions or about custom services, after all, they are there to cater to you.