Tag Archives: correlation

Anti-Correlation Between Stocks and Bonds is Still High

Posted on April 1, 2013 by Michael Harris

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

Posted on March 8, 2013 by Michael Harris

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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Forget Everything They Taught You About Correlation

Posted on March 2, 2013 by Michael Harris

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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Once in Sync Now in Different Paths

Posted on March 1, 2013 by Michael Harris

The 120-day rolling correlation between GOOG and AAPL reached a high of +0.76 in the first week of January 2012. Since then it has been on a free fall and currently at +0.27. Once in sync, now in different paths. … Continue reading →

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More on the Correlation Between Stocks and Gold

Posted on December 24, 2012 by Michael Harris

After 2009, each time the correlation between stocks and gold turned negative, stocks rallied to new short-term highs. However, the number of observations is not significant and this pattern may change if key players change their strategy. The fact that there was … Continue reading →

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Municipal Bond Prices Rally Supported by Treasuries

Posted on November 14, 2012 by Michael Harris

Prospects of higher taxes have fueled a rally in municipal bonds that was further supported by the recent stock market decline. MUB, the municipal bond ETF,  retreated yesterday after  testing its February high. We may see higher prices if the same conditions persist. … Continue reading →

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Stock-Bond Correlation On The Rise

Posted on October 26, 2012 by Michael Harris

The stock-bond 60-day rolling correlation calculated using SPY and TLT has increased 25% since the start of August, from -0.80 to -0.60. This may be good news for the stock market in the medium term because the volatility of stock/bond portfolios has increased … Continue reading →

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Investors in Shipping Stocks Defiant of Shipping Fundamentals

Posted on October 9, 2012 by Michael Harris

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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Reliable Souces of Technical and Fundamental Information

Posted on October 7, 2012 by Michael Harris

Just because you found a website that looks good and uses some buzzwords that does not mean it is a reliable source of technical and/or fundamental information you can rely on to make trading and/or investment decisions. Those who take for … Continue reading →

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Everything Revolves Around New York

Posted on September 29, 2012 by Michael Harris

When stock traders wake up in beautiful Sydney, in Australia, the local stock market direction for the day has been, for the most part, decided already by New York traders. This is of course frustrating and makes many to want … Continue reading →

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