The sheet also displays a correlation coefficient. Statistics define this figure as the relationship between two properties of interest, and our properties were GOOG and QQQ monthly returns. The coefficient was a positive .681, which could be expected, for GOOG is a large weight and market leader in the NASDAQ 100. For those who are rusty or not statistically inclined, the correlation coefficient ranges from -1 to +1, with -1 indicating a perfectly negative correlation and +1 indicating a perfect positive correlation.
This seasonal occurrence has an average return of 16.9% in GOOG and 1.63% for QQQ. While this is all interesting, it is important to note that this was a rather small sample set; meaning that the data below was only from once a year since the GOOG IPO, or only eight observations each.
In related news, GOOG said that they will spend about $300M on severance as opposed to the prior $275M, estimated in August, in efforts to clean out MMI. On the lighter side, it is reported that Google’s famous ‘street view’ option will soon be available for the mobile app on smart devices. Analysts have and average price target of $772 on GOOG, with 37 buy ratings and 8 holds (zero sells).
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