Cluster analysis

Definition:

A statistical technique that identifies clusters of stocks whose returns are highly correlated within each cluster and relatively uncorrelated across clusters. Cluster analysis has identified groupings such as growth, cyclical, stable, and energy stocks.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Tenants by Entireties (TEN ENT)

Joint ownership of property or securities by a husband and wife where, upon the death of one, the property goes to the survivor.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio