Tag Archives: ETF correlations

Everything Rallies While Stock-Commodities Correlations Remain Neutral

All market sectors rallied yesterday with utilities leading the way. Everyone was happy, stock, energy, bond, commodity and currency traders. At the end of the day it is the consumer who pays the bill of market interventions. Share

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Commodities and Yields in a Recoupling With Stocks

The coupling of commodities and yields with stocks ended in the middle of last year but created problems to funds betting on such correlations persisting for longer. Commodities started to recouple with the stock market in the third quarter of last year and yields followed … Continue reading

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Low Correlations Offer Diversification Opportunities And High Risks in 2014

The low correlations between stocks and bonds, currencies, precious metals and commodities offer opportunities for diversification in 2014 but high risks lurk in case these markets couple again.  Share

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A Whole New Ball Game

Two years ago, the correlation of stocks with bond yields, oil and currencies was very high. This has completely changed this year following a major market paradigm shift leading to neutral correlations with bond yields and very low correlations with commodities, currencies and metals.  Recently, a … Continue reading

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Markets Are Working on Their Future Coupling

After a period of decoupling that started back in May of this year, markets are about to start coupling again. They may go back to the old mode of coupling witnessed in the last three years or to a new one dictated … Continue reading

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