ES vs ZN

Hi, Is there any correlation between ES and ZN or it is just random.

Thanks.

 

Yes, take a look at a 5 minute chart!

 

ok...thx

 

very high negative correlation. I use T bonds as an indicator for ES.

 

Yes, but sometimes the correlation spread widens quite a bit. I'm not sure you would want to do a spread trade there, but you can use the bond market as a leading indicator a lot of the time.