AutoCorrelation is a mathematical measure, which can be used to assess how similar a time series is to a past version of itself. It can be used to identify whether there are repetitive patterns in a time series.
Technical analysts often prefer to look at trends in past values rather than intrinsic values to assess a security’s value. AutoCorrelation, which is also known as Serial Correlation, is used to determine how accurately the future price of a security can be predicted given its past prices. An AutoCorrelation of +1 demonstrates perfect positive correlation, whereby an increase in one of the time series, leads to a directly proportional increase of the other. Conversely, an AutoCorrelation of -1 demonstrates a perfectly negative correlation, whereby an increase in one of the time series, leads to a directly proportional decrease of the other.
| Ticker | Name | AutoCorrelation | StockRank™ |
|---|---|---|---|
| LON:DVNO | Develop North | -0.42 | 52 |
| LON:AMIF | Amicorp FS (UK) | -0.36 | 26 |
| LON:NTV | Northern 2 VCT | -0.31 | 43 |
| LON:BEMO | Barings Emerging Emea Opportunities | -0.29 | 0 |
| LON:MTVW | Mountview Estates P.L.C. | -0.29 | 60 |