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Tagged: correlation coefficient
can the correlation coefficient be taken into account to judge the direction of a STOCK also
Yes,to an extent, logic being the same. However the degree of variation will be high with the change in volatility. We have to take a cautious view.
yes rajneesh according to nitin ji we can even judge the direction of stock but you should have historical IV and required data as the same formula applies to all
sir please correct me if i am wrong
We have to check both call and put side IV and premium decay and have to do volume analysis as well to conclude anything