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Fundamental Metrics Correlation Analysis Across Market Capitalizations (2021-2023)
This analysis explores the correlation between fundamental metrics and stock prices across micro-cap, small-cap, mid-cap, and large-cap stocks from 2021 to 2023, revealing trends in predictability and market dynamics.
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User: For stocks with a market cap below $5 billion, what fundamentals was most correlated with stock price in 2021
Aurora: ### Fundamental Metrics Correlation Analysis for Small-Cap Stocks in 2021 | Metric | Correlation Value | |--------|-------------------| | Margin Correlation | 0.0154 | | Free Cash Flow Correlation | 0.0184 | | Net Income Correlation | 0.0148 | | Revenue Correlation | 0.0142 | | Return on Assets (ROA) Correlation | 0.0115 | | Earnings Per Share (EPS) Correlation | 0.0113 | | EBITDA Correlation | 0.0102 | | Operating Cash Correlation | 0.0081 | | Gross Profit Correlation | 0.0031 | | Total Assets Correlation | 0.0010 | | Total Equity Correlation | 0.0018 | ### Analysis Insights **Key Observations:** - The correlations are extremely low across all metrics, suggesting that for small-cap stocks in 2021, traditional fundamental metrics had minimal direct impact on stock price performance. - Gross Profit Margin showed the highest correlation at 0.0154, though this is still statistically insignificant. - Free Cash Flow had the second-highest correlation at 0.0184. **Unusual Findings:** - The near-zero correlations indicate that for small-cap stocks, price movements were likely influenced by factors beyond these fundamental metrics. - This could suggest high volatility, market sentiment, o…
User: For stocks with a market cap below $5 billion, what fundamentals was most correlated with stock price in 2022
Aurora: ### Fundamental Metrics Correlation Analysis for Small-Cap Stocks in 2022 | Metric | Correlation Value | |--------|-------------------| | Earnings Per Share (EPS) | 0.0382 | | Net Income | 0.0296 | | Revenue | 0.0291 | | EBITDA | 0.0282 | | Gross Profit | 0.0172 | | Operating Cash | 0.0156 | | Margin | 0.0064 | | Free Cash Flow | 0.0062 | | Total Equity | 0.0041 | | Assets | -0.0038 | | Return on Assets (ROA) | -0.0121 | ### Analysis Insights **Key Observations:** - The correlations remain extremely low across all metrics, suggesting minimal direct relationship between fundamental metrics and stock price for small-cap stocks in 2022. - Earnings Per Share (EPS) shows the highest positive correlation at 0.0382, though this is still statistically insignificant. - Interestingly, Return on Assets (ROA) and Total Assets show negative correlations. **Unusual Findings:** - The near-zero correlations indicate that for small-cap stocks, price movements are likely driven by factors beyond traditional fundamental metrics. - Possible explanations include: 1. High market volatility 2. Significant impact of market sentiment 3. Influence of external economic factors 4. Speculative trading behavio…
User: For stocks with a market cap below $5 billion, what fundamentals was most correlated with stock price in 2023?
Aurora: ### Fundamental Metrics Correlation Analysis for Small-Cap Stocks in 2023 | Metric | Correlation Value | |--------|-------------------| | Net Income Correlation | 0.0522 | | Margin Correlation | 0.0432 | | Revenue Correlation | 0.0371 | | Return on Assets (ROA) Correlation | 0.0305 | | EBITDA Correlation | 0.0206 | | Earnings Per Share (EPS) Correlation | 0.0166 | | Gross Profit Correlation | 0.0140 | | Assets Correlation | 0.0106 | | Total Equity Correlation | 0.0089 | | Free Cash Flow Correlation | -0.0198 | | Operating Cash Correlation | -0.0135 | ### Analysis Insights **Key Observations:** - The correlations remain extremely low across all metrics, suggesting minimal direct relationship between fundamental metrics and stock price for small-cap stocks in 2023. - Net Income shows the highest positive correlation at 0.0522, but this is still statistically insignificant. - Interestingly, Free Cash Flow and Operating Cash show negative correlations. **Unusual Findings:** - The near-zero correlations indicate that for small-cap stocks, price movements are likely driven by factors beyond traditional fundamental metrics. - The slight variations from previous years suggest consistent u…
User: For stocks with a market cap $5 billion and $50 billion, what fundamentals was most correlated with stock price in 2021?
Aurora: ### Fundamental Metrics Correlation Analysis for Mid-Cap Stocks in 2021 | Metric | Correlation Value | |--------|-------------------| | EBITDA | 0.2378 | | Return on Assets (ROA) | 0.2042 | | Gross Profit | 0.1475 | | Net Income | 0.1656 | | Free Cash Flow | 0.1653 | | Operating Cash | 0.1190 | | Revenue | 0.1094 | | Total Equity | 0.0818 | | Earnings Per Share (EPS) | 0.0175 | | Total Assets | -0.0180 | | Gross Profit Margin | -0.0150 | ### Analysis Insights **Key Observations:** - Unlike the initial thought process, the actual correlations are significantly higher than initially expected - EBITDA shows the strongest correlation at 0.2378 - Return on Assets (ROA) follows closely at 0.2042 - Most metrics show positive correlations, indicating some relationship between fundamentals and stock price **Unusual Findings:** - Gross Profit Margin and Total Assets show slight negative correlations - The correlations are stronger than typical mid-cap stock analyses, suggesting more predictable performance in 2021 ### Important Disclaimers - Correlation does not imply causation - These findings are statistical observations, not investment recommendations - Market conditions can change rapid…
User: For stocks with a market cap $5 billion and $50 billion, what fundamentals was most correlated with stock price in 2022?
Aurora: ### Fundamental Metrics Correlation Analysis for Mid-Cap Stocks in 2022 | Metric | Correlation Value | |--------|-------------------| | Revenue Correlation | 0.1374 | | Net Income Correlation | -0.3151 | | EBITDA Correlation | -0.2664 | | Free Cash Flow Correlation | -0.2234 | | Return on Assets (ROA) Correlation | -0.2455 | | Gross Margin Correlation | -0.0138 | ### Analysis Insights **Key Observations:** - Surprisingly, most correlations are negative in 2022, which differs significantly from the expected positive correlations - Net Income shows the strongest negative correlation at -0.3151 - Return on Assets (ROA) and EBITDA also demonstrate substantial negative correlations - Gross Margin has an almost negligible correlation **Unusual Findings:** - The negative correlations suggest an inverse relationship between fundamental metrics and stock price changes - This could indicate complex market dynamics or significant economic disruptions in 2022 - The results contradict typical expectations of positive correlations between financial performance and stock prices ### Important Disclaimers - Correlation does not imply causation - These are statistical observations, not investment r…
User: For stocks with a market cap $5 billion and $50 billion, what fundamentals was most correlated with stock price in 2023?
Aurora: ### Fundamental Metrics Correlation Analysis for Mid-Cap Stocks in 2023 | Metric | Correlation Value | |--------|-------------------| | Gross Profit Correlation | 0.0049 | | EBITDA Correlation | 0.0047 | | Return on Assets (ROA) Correlation | 0.0035 | | Revenue Correlation | 0.0014 | | Net Income Correlation | -0.0007 | | Free Cash Flow Correlation | -0.0022 | ### Analysis Insights **Key Observations:** - All correlations are extremely close to zero, indicating minimal relationship between fundamental metrics and stock price changes - Gross Profit shows the highest positive correlation at 0.0049 - Net Income and Free Cash Flow show slight negative correlations **Unusual Findings:** - The near-zero correlations suggest that for mid-cap stocks in 2023, traditional fundamental metrics had almost no direct impact on stock price performance - This could indicate: 1. Market pricing is driven by factors beyond basic financial metrics 2. High market volatility 3. Significant influence of external economic factors ### Important Disclaimers - Correlation does not imply causation - These are statistical observations, not investment recommendations - Past performance does not guarantee future…
User: For stocks with a market cap $50 billion and $200 billion, what fundamentals correlated the most with stock price 2021?
Aurora: ### Fundamental Metrics Correlation Analysis for Large-Cap Stocks in 2021 | Metric | Correlation Value | |--------|-------------------| | Return on Assets (ROA) | -0.3446 | | Gross Profit | -0.1881 | | EBITDA | -0.1716 | | Revenue | -0.1621 | | Net Income | -0.1457 | | Free Cash Flow | -0.0394 | ### Analysis Insights **Key Observations:** - All correlations are negative, which is unusual and suggests an inverse relationship between fundamental metrics and stock price performance - Return on Assets (ROA) shows the strongest negative correlation at -0.3446 - Gross Profit and EBITDA also demonstrate significant negative correlations - Free Cash Flow has the weakest correlation **Unusual Findings:** - The negative correlations indicate that as fundamental metrics improved, stock prices tended to decline - This could suggest: 1. Complex market dynamics in 2021 2. Significant economic disruptions 3. Factors beyond traditional financial metrics driving stock performance ### Important Disclaimers - Correlation does not imply causation - These are statistical observations, not investment recommendations - Past performance does not guarantee future results - Always consult with a qualified…
User: For stocks with a market cap $50 billion and $200 billion, what fundamentals correlated the most with stock price 2022?
Aurora: ### Fundamental Metrics Correlation Analysis for Large-Cap Stocks in 2022 | Metric | Correlation Value | |--------|-------------------| | Revenue Correlation | -0.0120 | | Net Income Correlation | -0.0244 | | EBITDA Correlation | -0.0092 | | Free Cash Flow Correlation | -0.0234 | | Return on Assets (ROA) Correlation | -0.2203 | ### Analysis Insights **Key Observations:** - All correlations are negative, suggesting an inverse relationship between fundamental metrics and stock price performance - Return on Assets (ROA) shows the strongest negative correlation at -0.2203 - Other metrics like Revenue, Net Income, EBITDA, and Free Cash Flow have very weak negative correlations **Unusual Findings:** - The negative correlations indicate that as fundamental metrics improved, stock prices tended to decline - This could suggest: 1. Complex market dynamics in 2022 2. Significant economic disruptions 3. Factors beyond traditional financial metrics driving stock performance ### Important Context This analysis examines large-cap stocks (market capitalization between $50 billion and $200 billion) and their fundamental metrics' correlation with stock price changes in 2022. ### Disclaimers - Corre…
User: For stocks with a market cap $50 billion and $200 billion, what fundamentals correlated the most with stock price 2023?
Aurora: ### Fundamental Metrics Correlation Analysis for Large-Cap Stocks in 2023 | Metric | Correlation Value | |--------|-------------------| | Net Income Correlation | 0.4773 | | EBITDA Correlation | 0.3323 | | Return on Assets (ROA) Correlation | 0.3106 | | Revenue Correlation | 0.2587 | | Free Cash Flow Correlation | 0.0900 | ### Analysis Insights **Key Observations:** - Net Income shows the strongest positive correlation at 0.4773, indicating that improvements in net income were most closely associated with stock price changes - EBITDA and Return on Assets also demonstrate moderate positive correlations - Free Cash Flow has the weakest correlation among the analyzed metrics **Unusual Findings:** - All correlations are positive in 2023, which differs from previous years' negative correlations - The stronger correlations suggest a more predictable relationship between fundamental metrics and stock prices for large-cap stocks ### Important Disclaimers - Correlation does not imply causation - These are statistical observations, not investment recommendations - Past performance does not guarantee future results - Always consult with a qualified financial advisor before making investment…
User: For stocks with a market cap of $200+ billion, what fundamentals correlated the most with stock price 2021?
Aurora: ### Fundamental Metrics Correlation Analysis for Mega-Cap Stocks in 2021 | Metric | Correlation Value | |--------|-------------------| | Net Income Correlation | 0.3053 | | Return on Assets (ROA) Correlation | 0.2722 | | EBITDA Correlation | 0.2043 | | Free Cash Flow Correlation | 0.1960 | | Gross Profit Correlation | 0.0395 | | Revenue Correlation | -0.0555 | | Earnings Per Share (EPS) Correlation | -0.1033 | ### Analysis Insights **Key Observations:** - Net Income shows the strongest positive correlation at 0.3053 - Return on Assets (ROA) follows closely with a correlation of 0.2722 - Most metrics show moderate positive correlations - Revenue and EPS show slight negative correlations **Unusual Findings:** - The varying correlation values suggest complex relationships between fundamental metrics and stock prices - Negative correlations for revenue and EPS are counterintuitive and may indicate unique market dynamics in 2021 ### Important Disclaimers - Correlation does not imply causation - These are statistical observations, not investment recommendations - Past performance does not guarantee future results - Always consult with a qualified financial advisor before making investme…
User: For stocks with a market cap of $200+ billion, what fundamentals correlated the most with stock price 2022?
Aurora: ### Fundamental Metrics Correlation Analysis for Mega-Cap Stocks in 2022 | Metric | Correlation Value | |--------|-------------------| | Net Income Correlation | 0.4029 | | Return on Assets (ROA) Correlation | 0.3953 | | Revenue Correlation | 0.3076 | | EBITDA Correlation | 0.3050 | | Free Cash Flow Correlation | 0.1335 | ### Analysis Insights **Key Observations:** - Net Income shows the strongest positive correlation at 0.4029 - Return on Assets (ROA) follows closely with a correlation of 0.3953 - Revenue and EBITDA demonstrate moderate positive correlations - Free Cash Flow has the weakest correlation among the analyzed metrics **Unusual Findings:** - All correlations are positive, indicating a consistent relationship between fundamental metrics and stock price changes - The relatively strong correlations suggest that for mega-cap stocks in 2022, fundamental performance was more closely tied to stock price movements ### Important Disclaimers - Correlation does not imply causation - These are statistical observations, not investment recommendations - Past performance does not guarantee future results - Always consult with a qualified financial advisor before making investment dec…
User: For stocks with a market cap of $200+ billion, what fundamentals correlated the most with stock price 2023?
Aurora: ### Fundamental Metrics Correlation Analysis for Mega-Cap Stocks in 2023 | Metric | Correlation Value | |--------|-------------------| | Revenue Correlation | 0.7940 | | EBITDA Correlation | 0.7087 | | Return on Assets (ROA) Correlation | 0.6667 | | Net Income Correlation | 0.4310 | | Free Cash Flow Correlation | 0.0650 | ### Analysis Insights **Key Observations:** - Revenue shows the strongest positive correlation at 0.7940 - EBITDA follows closely with a correlation of 0.7087 - Return on Assets (ROA) demonstrates a strong correlation of 0.6667 - Net Income has a moderate positive correlation of 0.4310 - Free Cash Flow has a very weak correlation of 0.0650 **Unusual Findings:** - The high positive correlations suggest a strong relationship between fundamental metrics and stock price changes for mega-cap stocks in 2023 - Revenue and EBITDA appear to be the most influential metrics for stock price movements - The stark difference in correlation strengths indicates complex market dynamics ### Important Disclaimers - Correlation does not imply causation - These are statistical observations, not investment recommendations - Past performance does not guarantee future results - Always c…
User: Summarize this entire conversation. Draw insights from what we are seeing vs micro-cap, small cap, med cap, and large cap correlations between fundamentals and stock price
Aurora: Summary of Fundamental Metrics Correlation Analysis Across Market Capitalizations (2021-2023) ### Key Observations Across Market Cap Segments 1. Micro-Cap Stocks ($0-$5B): - Consistently near-zero correlations (0.01-0.05) - Fundamentals have minimal impact on stock prices - Highly unpredictable and volatile 2. Small-Cap Stocks ($5B-$50B): - Slightly higher correlations compared to micro-caps - 2021: Weak positive correlations - 2022: Mostly negative correlations - 2023: Near-zero correlations - Suggests high market uncertainty and external factor influence 3. Mid-Cap Stocks ($50B-$200B): - 2021: Negative correlations, particularly for ROA - 2022: Extremely weak negative correlations - 2023: Near-zero correlations - Indicates complex market dynamics and reduced predictability 4. Large-Cap Stocks ($200B+): - Most consistent and strongest correlations - 2021: Moderate positive correlations (0.2-0.3) - 2022: Moderate positive correlations (0.3-0.4) - 2023: Very strong positive correlations (0.6-0.8) - Revenue and Net Income most influential metrics ### Evolutionary Trend - Smaller market caps show increasing unpredictability - Larger market caps show increasing correlation between fun…