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Tag Archives: market correlation

5-day US S&P500 sector heatmap captured from

How’s Energy (WTI, U96, BN4) doing in this ‘correction’?

Energy stocks had prospects to become star performers in 2018 based on their January performance as well as performance of WTI. With the US stock correction however a 5-day heatmap reveals Energy (XLE) to be the worst performing sector. Also WTI technicals, performance of SGX-listed Keppel, Sembcorp.

JP225 - SG30 - AUDJPY overlay

One drop all drop contagion in a high correlated global village

It really shouldn’t matter to a speculator what caused this round of correction/crash. It could be a spike in the VIX complex, rising bond yields or runaway algorithm-trading. If there is a crash somewhere, it would be followed by margin calls which will trigger sell orders in other assets to raise cash.

HSI - AUDJPY divergence in weekly chart 2008 - present

Is it time for SiMSCI and HSI to converge with AUDJPY?

AUDJPY, SiMSCI and HSI demonstrated very high levels of positive correlation in the past but this correlation ‘fell apart’ since 2017. Is this correlation still valid? If valid, what does AUDJPY’s recent trend portend for traders in these two Asian indices? Is it time to converge? Indices to fall some more?