Inter Market Correlations

Discussion in 'Trading' started by bone, Feb 15, 2016.

  1. Trader13

    Trader13

    Just as bone indicated, correlations are best used as a screen or first step in looking for something else that offers value in trading. Correlation itself is not a trade setup or edge.
     
    #11     Feb 15, 2016
    ETcallhome, wrbtrader and bone like this.
  2. Pairs trading strategy... a strategy not easy to implement ... cos you need to monitor multiple pairs while you also need to monitor multiple timeframes...
    I used to use this in Forex using cross pairs but I have stopped doing it because this strategy requires high level of concentration and sometimes makes me very aggressive.
    But I admit this strategy can produce higher profits than any other strategies.
     
    #12     Feb 15, 2016
  3. Cswim63

    Cswim63

    it's floating around somewhere over West Texas.
     
    #13     Feb 16, 2016
  4. bone

    bone

    Some more on-the-run inter market correlations based on daily settlements. I blend the results from two different statistical studies, and most importantly, I use the results as a simple SCREENING method to see if a combination warrants further investigation.

    FDAX vs CAC 40

    1 Month 0.887
    3 Months 0.968
    6 Months 0.904
    1 Year 0.900
    2 Years 0.941
    5 Years 0.970

    Copper vs Canadian Dollar

    1 Month 0.901
    3 Months 0.533
    6 Months 0.839
    1 Year 0.942
    2 Years 0.962
    5 Years 0.947

    10 Year Swiss Note vs 5 year German Bobl

    1 Month 0.943
    3 Months 0.697
    6 Months -0.085
    1 Year -0.075
    2 Years 0.805
    5 Years 0.859

    ICE Gas/Oil vs 4 Year Russian Government Bond

    1 Month 0.918
    3 Months 0.836
    6 Months 0.536
    1 Year 0.188
    2 Years 0.229

    Indian Rupee vs Coriander (NCDEX- Food&Fiber)

    1 Month 0.729
    3 Months 0.728
    6 Months 0.677
    1 Year 0.114
     
    #14     Feb 19, 2016
  5. destriero

    destriero

    FDAX and CAC are at 97 shift 1M on BBG and macroaxis. wtf did you get 88?
     
    #15     Feb 19, 2016