# Finding the correlation coefficient of two stocks

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## Finding the correlation coefficient of two stocks

 This post has NOT been accepted by the mailing list yet. Hi , library(tseries) years <- 2 n <- 50 today <- Sys.Date()     s1 <- get.hist.quote(instrument = "^BSESN", start = format(today-365*years-2*n),quote = "Close") s2 <- get.hist.quote(instrument = "BHEL.BO", start = format(today-365*years-2*n),quote = "Close") corr <- cor(s1,s2) print(corr) While Running the above commands i got the following errors corr <- cor(s1,s2) Error in cor(s1, s2) : incompatible dimensions so I am no table to find the correlation coefficient of the above stocks. Kindly help me thanks veepsirtt
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## Re: Finding the correlation coefficient of two stocks

 veepsirtt wrote corr <- cor(s1,s2) Error in cor(s1, s2) : incompatible dimensions Check lenghts of your series. cor(c(1,2),c(1,2,3)) #Error in cor(c(1, 2), c(1, 2, 3)) : incompatible dimensions Dieter
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## Re: Finding the correlation coefficient of two stocks

 This post has NOT been accepted by the mailing list yet. Hi Dieter Menne, Yahoo historical stock price contains " Zeros and NA" for my symbols "^BSESN","BHEL.BO"  . I want to remove  " Zeros and NA" so that the dimensions of both the series  is the same. How to do it ?. thanks veepsirtt
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## Re: Finding the correlation coefficient of two stocks

 In reply to this post by Dieter Menne Dieter is correct, the lengths of the 2 series are different Try .... s = merge(s1,s2) corr = cor(s[,"Close.s1"],s[,"Close.s2"],use="pairwise.complete.obs") print(corr) HTH Pete
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## Re: Finding the correlation coefficient of two stocks

 This post has NOT been accepted by the mailing list yet. In reply to this post by Dieter Menne Consult RMetrics group on what is the correct way to estimate correlation between two TS (most notably integrated time series). You might want to look into my latest post on this regards: http://r.789695.n4.nabble.com/Finding-Correlation-on-Spreads-td3234774.htmlThanks,
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## Re: Finding the correlation coefficient of two stocks

 This post has NOT been accepted by the mailing list yet. In reply to this post by Pete Brecknock  Hi Pete Brecknock, Your code works fine for me . thanks a lot veepsirtt