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New in Mathematica 9Enhanced Graphs and Networks

Portfolio Diversification 

Diversification is a way for investors to reduce investment risk. The asset values within a well-diversified portfolio do not move up and down in perfect synchrony. Find members of the Dow Jones Industrial Average whose returns tend to move in sync.

Build a correlation matrix between stocks.

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Build a graph with edges between stocks with correlation coefficient greater than .

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A largest group of stocks that tend to move in sync.

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Show the cumulative return plots.

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