Tag Archives: correlation

Why The Stock Market Was Down Yesterday

So why did the stock market go down yesterday? Was that because of the overbought signal from the McClellan indicator or because of the resistance from the 50-day moving average? Or was it due to falling crude oil prices? Can … Continue reading

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Correlation Between Stocks and Oil is a Chart Illusion

Two markets that are both in down trends are not necessarily highly correlated. For example, although the stock and oil markets are both in a downtrend, their actual correlation is not that high. Actually, the much talked correlation is a … Continue reading

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Whether Bonds and Stocks are Correlated Depends on the Timeframe

In the short-term stocks and bonds have again turned anti-correlated after a period of positive correlation, in the medium-term they show no correlation and in the longer-term they are anti-correlated.  Correlation depends on timeframe.

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Bonds – Small Caps Anti-correlation and Chart Illusions

The correlation between TLT and IWM was neutral in the beginning of this year but then the two started to anti-correlate as investors sold small caps and moved into bond funds. The tendency is for the anti-correlation to increase.

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The Apple and Gold Correlation Illusion

In an amusing post, The Reformed Broker has finally solved the puzzling, at least for some bloggers, apparent high correlation between Apple and gold. In this non-amusing post, I show that the correlation is nowhere near as high as claimed and that some … Continue reading

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Anti-Correlation Between Stocks and Bonds is Still High

The 12o-day rolling correlation between stocks and bonds made a low of -0.81 during February of 2012 and since then its has risen to slightly higher levels around -0.66. However, the correlation is still low and despite the correction due to a rise … Continue reading

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They First Got Into GOOG and Then Dumped AAPL

One of the most lucrative trades this year so far has been long GOOG and short AAPL. For equal allocation it has returned more than 36% in less that 2 months to those who have shaken out weak hands in AAPL hoping for a target … Continue reading

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