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correlation-analysis skillA

correlation-analysis is agent-read markdown (skill) from hkuds/vibe-trading: Correlation and cointegration analysis — co-movement discovery, deep return-correlation analysis, sector clustering, realized correlation, Engle-Granger / Johansen cointegration, half-life, Kalman dynamic hedge ratio, cross-market linkage analysis, and pair-trading signal generation.

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What the file says

# Correlation and Cointegration Analysis

## Overview

Correlation analysis is a foundational tool for pairs trading, portfolio construction, and risk management. This skill covers four analysis modes (co-movement discovery / return-correlation deep dive / sector clustering / realized correlation), a full cointegration-testing framework, cross-market linkage analysis, and the complete workflow from analytics to pair-trading signals.

---

## Mode 1: Co-Movement Discovery

**Use case**: Given a target asset, scan a universe for highly correlated assets and build a candidate pool with similar industry or factor exposure, for use in pairs trading or substitute identification.

### Workflow

```
1. Pull daily return series for the target asset and N candidates
2. Compute Pearson / Spearman correlations between the target and each candidate
3. Rank by correlation in descending order and keep Top-K (usually K=10-20)
4. Run cointegration tests on the Top-K set to retain pairs with real long-run equilibrium
5. Output the candidate pool and a correlation summary
```

```python
import pandas as pd
import numpy as np
from scipy.stats import pearsonr, spearmanr

def scan_correlated_assets(
…

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Source

GitHub

hkuds/vibe-trading · 34,089 stars · license MIT · pushed 2026-09-27 · branch main

API

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