# correlation-check

> Monitor correlations between positions, strategies, and factors

- Author: maminul007
- Repository: maminul007/trading-platform
- Version: 20260208000611
- Stars: 1
- Forks: 0
- Last Updated: 2026-02-07
- Source: https://github.com/maminul007/trading-platform
- Web: https://mule.run/skillshub/@@maminul007/trading-platform~correlation-check:20260208000611

---

---
name: correlation-check
description: Monitor correlations between positions, strategies, and factors
argument-hint: "[--positions|--strategies|--factors|--drift]"
---

# Correlation Monitoring

Monitor and analyze correlations across portfolio dimensions.

## Usage

- `/correlation-check` - Full correlation analysis
- `/correlation-check --positions` - Position correlation matrix
- `/correlation-check --strategies` - Strategy correlations
- `/correlation-check --factors` - Factor correlations
- `/correlation-check --drift` - Detect correlation drift
- `/correlation-check --stress` - Stress correlation analysis

## Correlation Thresholds

| Context | Warning | Critical |
|---------|---------|----------|
| Position pairs | > 0.7 | > 0.85 |
| Strategy pairs | > 0.6 | > 0.8 |
| Factor loading | > 0.5 | > 0.7 |
| Correlation drift | > 0.2 change | > 0.3 change |

## Related Files

- `scripts/risk_management/strategy_analytics.py` - CorrelationMonitor
- `services/risk/risk_manager.py` - Correlation limits
- `scripts/risk_management/portfolio_optimizer.py` - Correlation constraints

## Instructions

When this skill is invoked:

1. Parse arguments:
   - No args: Full correlation report
   - `--positions`: Position correlation matrix
   - `--strategies`: Strategy correlations
   - `--factors`: Factor correlation analysis
   - `--drift`: Detect correlation changes

2. Run correlation analysis:
   ```python
   from risk_management.strategy_analytics import CorrelationMonitor

   monitor = CorrelationMonitor(correlation_threshold=0.7, lookback_window=60)
   result = monitor.analyze_correlations(strategy_returns, factor_returns)
   ```

3. Display correlation matrix:
   ```
   Correlation Analysis
   ═══════════════════════════════════════════════════════════

   Period: Last 60 days
   High correlations detected: 3 pairs

   POSITION CORRELATION MATRIX (Top Holdings)
   ─────────────────────────────────────────────────────────
           NVDA    AAPL    MSFT    GOOGL   AMZN
   NVDA    1.00    0.72    0.68    0.65    0.58
   AAPL    0.72    1.00    0.78    0.71    0.62
   MSFT    0.68    0.78    1.00    0.74    0.65
   GOOGL   0.65    0.71    0.74    1.00    0.69
   AMZN    0.58    0.62    0.65    0.69    1.00

   HIGH CORRELATION PAIRS
   ─────────────────────────────────────────────────────────
   Pair            Corr    Combined Wt   Diversification
   AAPL-MSFT       0.78    18.0%         Low - consider reducing
   MSFT-GOOGL      0.74    14.7%         Low - review exposure
   ```

4. Display correlation drift:
   ```
   CORRELATION DRIFT DETECTION
   ─────────────────────────────────────────────────────────
   Pair            Current   60d Ago   Change    Status
   NVDA-AAPL       0.72      0.58      +0.14     Increasing
   Tech-Financials 0.45      0.22      +0.23     Regime shift
   ```

5. Recommendations:
   - Diversification suggestions
   - Rebalancing triggers
   - Hedge opportunities