Tag Archives: 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.
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.
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.
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
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