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

Posted in ETF Analysis, Technical Analysis | Tagged | Comments Off

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

Posted in Economic Analysis, ETF Analysis, Market Statistics | Tagged | Comments Off

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

Posted in ETF Analysis | Tagged , | Comments Off

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

Posted in ETF Analysis, Market Statistics | Tagged | Comments Off

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

Posted in ETF Analysis | Tagged | Comments Off

ETF Correlation Down Spikes. How Important Are They?

During the last two days there are noticeable down spikes in the correlations of bond, commodity, metal, energy and currency ETFs with SPY. The negative values of the correlations have not been witnessed in most cases since 2008 and during the severe stock market decline … Continue reading

Posted in ETF Analysis | Tagged | Comments Off

Decoupling Across the Board in Progress

The decoupling of bonds, currencies, metals and commodities from the stock market started in May of this year and it is still in progress. The cause of the decoupling is the high probability of FED tapering its asset purchasing, not because the … Continue reading

Posted in ETF Analysis | Tagged | Comments Off