Tag Archives: ETF correlations
The anti-correlation between SPY and TLT persists while the correlation between SPY and UUP is now 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.
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
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.
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