Same Discovery for HD and TGT stocks

Volume of orders correlation between HD and TGT

HD in red

TGT in blue.

Here we have the same pattern for two other correlated stocks (HD and TGT). Volume of orders are highly correlated when we see the intraday data and plot all incoming orders size. The correlation of these two stock lays not on the fondamental factors of the two companies but the behaviour of the financial actors. Again a highly smart algorithm with a speed advantage can profit from this pattern because it will be able to know the amount of incoming orders side and size microseconds before they reach the exchange matching engine. I was highlighting this situation in the brochure of Viral Capital 3 year ago and it’s not a surprise that this phenomenon is still valid today. It’s the topic of one of the modules of Viral capital which helps institutional investors protect their orders from being exploited by HFT algorithms. You can see the not updated Document here.

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Push & Profit the market making module

Push & Profit Standard Metrics