Okay, we got a new, a new component for Godel. Really excited to show it to you. It's called GR — graph relationship. So this is the relationship between AMGN and SPX. Let's take a look.
I can do, let's say, AMGN and another biotech. Um, maybe let's do a big bio-pharma that's sort of like them. Maybe Merck. Okay. So the first thing here is price. Nothing too special with that.
The second thing here is the ratio. So this is a graph of the ratio of X divided by Y. So in this case, Amgen divided by Merck. And when you're a pairs trader, you're trying to trade that ratio, if that makes sense. Um... okay.
Does this red guy mean high, or what does this mean exactly? It's interesting. Okay. So, what else in this component? I may need a scroll bar.
There's correlation. So this is the correlation coefficient. So this is how correlated are prices at this point. This is a low. This is the lowest point of correlation in 2020, around the end of the year roughly.
And then it had a very high correlation many years ago where the stocks would trade in tandem. Yeah, you click, click, click it here and you can change it. It's like very not obvious where to click it. We'll adjust that.
So there's correlation coefficient, which is really important. And then here is beta. So this is a scatter plot of returns which allows you to calculate beta, alpha, Pearson, R-squared, standard deviation, error for both terms, and then you can show full beta versus filtered beta.
And these are the dates you could actually hover over to see specific outlier dates. And this corresponds very closely to one of the Bloomberg functions, GR. Oh, is the red dot today? That's really cool. I like that.
Um, so you can kind of see, you know, a number of... yeah, this will be expanded into its own function called beta, and you can adjust these and do lots of different things. But this ratio analysis, or GR relationship analysis, allows you to see all these relationships at once.
Now, another interesting one would be, let's say, um, Lilly. And you can see that the correlation of Lilly and Amgen has not been very high. But let's see about Novo and Lilly.
Really interesting. They sometimes are highly correlated and then they sometimes aren't. Fascinating. Um, you can also change the window of correlation. So let me see if I change that to 90 days, if that changes anything, or even 30 days.
See, the correlation sort of is typically high but occasionally breaks. That's kind of the idea there. Oh, that's a great idea. Olo versus IonQ. Here's Olo, here's IonQ. Two totally different companies, but for a while they're very highly correlated, and then that correlation just broke down in the last month or two.
So sometimes you have days where here Olo was up 40% and IonQ was up 17. Here IonQ is down 40% and Olo is only down 11. Here's another outlier where IonQ was up 11 and Olo is down 25. Another one that's somewhat similar, and another outlier where IonQ was down and Olo was up. So kind of all over the place.
No, it's out on GR. You just have to refresh your browser when there's a new feature release. You have to refresh your browser to load the new program. Olo is not selling product just like IonQ.
Let's see if we can do IonQ and D-Wave and see how correlated those are. Correlation extremely high. Extremely high on those. Although you can see the spread change has D-Wave been outperforming IonQ since basically the last nine months or so.
Futures are coming soon, don't worry. Futures International, I pray International is going to roll out very soon. It is available for free users. Yes. Next step is this should be a live, a live thing.
Well, you know, it's okay if a company doesn't have a product out right now. It sometimes takes time to come out with a product. I mean, every biotech company has that exact situation, right? That's a great idea. A27. Yeah, that's a good idea as well. Call you bad daddy.
Yeah, I want to meet up with Amit and talk to him about maybe having a tighter collab. I like him. Yeah, the window of correlation can definitely be adjusted.
So that's a new feature we've been cooking up, but it's just an appetizer. The big meal is coming soon, which is all international stocks. Which, you know, obviously other platforms have international stocks, but there's only one other platform that has this command-line terminal-like system.
You know, you can go on Yahoo Finance and look things up, but it really isn't the same. Oh, I'm glad you know that, Tizzle. We're working hard on it. It's a fascinating computational problem.
Which we have some experience with, with some of these really big computational problems. So, you know, we think we could do that maybe with GPUs, but we're working on a few different things.
I mean, look, Olo is an extremely speculative, you know, thing. Well, backtesting, you know, there's almost no platforms that do it because to do it right is very, very tricky. International free for everyone, absolutely. You know, but obviously some of the features will be limited for free users versus paid users, but... got to use the LACE chip. Exactly.
Yeah, I'm pretty bearish too. But, you know, you have to be open-minded. I mean, there's definitely stocks that are great longs and stocks that are great shorts right now. I'm not short Carvana.
I wish I could do the stuff with D-Wave. Oh, wow. Look at this. You really pointed out something here. Nvidia and AMD correlation is almost one.
It's really important to graph correlation in general. You know, there's this concept in finance that when markets turn down, generally correlation goes to one. It's kind of a saying. And, you know, in essence, when people have great fear, they sell everything, you know, it doesn't matter what it is. So it's really interesting.
And get rid of beta. Let's do Palantir and Hims. Wow. For two wildly different stocks, correlation is incredible. And you can turn the correlation down. I mean, let's try seven days. Still really high. Crazy.
There's some alpha there. Sometimes it swings negative. GR is the feature. Any stock, equity, GR. And again, soon you'll be able to do this on international stocks and all kinds of indices, and it's going to be great.
What are two super correlated stocks? What's the ultra-short stock for like Ion, or ultra-long? What's IonQ's leveraged stock? It's like Hims, but Hims is only two prices... or well, prices.
So Hims is great, but it's only prices. So if we do IonQ equity Hims, I can see a chart of IonQ, and then I can add, you know, balance here. I can add Hims. I can add Nvidia.
And I see that, you know, Nvidia's kind of been dead. So let me remove Nvidia. Let me add Robinhood. Come on. Isn't there a leveraged Ion? Anybody? Everybody awake? Come on.
Hood and... wow, Hood and Hims are basically the same stock. Look at that. That is nuts. Hood and Robinhood. Okay, so there you go. Correlation is virtually one. There's no chart that looks like this.
The ratio is interesting. The ratio blew out to 4-to-1 at one point. That's weird. Yeah. I don't know if we'll do an MCP, but I think we'll do LLM stuff. It's actually what I should be working on right now.
There you go. IonQ and IONX. And what's funny here is the axes. Notice the axis correlation is one. The lowest point was -0.97. So like extremely high correlation, as it should be.
Well, if you know what a correlation coefficient is in math, you know, I think you'll understand kind of what it is. But it's interesting that the graph kind of resizes when like, you know, there's something totally different. So anyway, Hims is different because it's just one thing, which is price.
QUBT beats all of these guys. Was a total penny stock. Looks like in this race, Hood has won in six months. Hood has more than doubled. Only QUBT and Palantir are close. And IonQ has been the big underperformer.
Even though it's up a lot, it's not like it's that bad. Rigetti is also... even Rigetti's outperformed Ion over six months. So pretty much a dog relative to these high flyers.
We don't do too much AI yet, but we're working on something really cool. First things first, get all the data, get all the functions and tools. Then the AI can use all those.
So that's yet another competitor's function, easily cloned, and we'll work hard to make them even better.
