Tag Archives: correlation

Ominous Correlation

The 60-day correlation between SPY and QQQ ETFs has plunged near pre-dotcom crash and below pre-2007 top levels. Caveat lector included.

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Low S&P 500/Nasdaq-100 Correlation Positive For the Market

The 60-day correlation between S&P 500 and Nasdaq-100 has dropped to levels reached along the 2000s uptrend. Although correlation can be dubious measure, current low levels may indicate that there is potential in the market for further gains.

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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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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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Forget Everything They Taught You About Correlation

If in business school you were taught that high positive correlation means that when one security moves, either up or down, the other security moves in lockstep in the same direction and that high anti-correlation means that when one security moves, … Continue reading

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Investors in Shipping Stocks Defiant of Shipping Fundamentals

It could be that investors in shipping stocks either do not understand the market they are dealing with or they know something that the rest do not. In my opinion the former is the case. As I show in this … Continue reading

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