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Correlation

Hershey's CoCo Sector Report - January 28, 2017Materials and Finance both started the week flat, moved up for a couple days, then remained steady on Friday while the US and World markets were down. If the US and World indexes are up next week I expect much from these two! Real Estate and Consumer Staples (Non-Cyclical) were the clear Sector losers taking back all the gains they made early in the week to finish weak. Materials had over 60 stocks > 5% for the week... compare that with Real Estate that had only 9! Good trading! Brian Hershey ***************************** Check out my "Hershey's CoCo World" indicator, available now for your US stock and sector evaluations. "CoCo World" helps to answer the following question: Is this stock moving alone or with the US and world markets? No stock is an island, so it's important to see what everyone else is doing. Useful across all time frames, small and packed with info!
AMEX:XLB
by bnh
1
CABLE Validates Classic Opening GAP Price ReversalCABLE @1.2594 N. High Confirms Price Reversal After Opening GAP similar to the what transpired from POST UK Exiting ERM dated Sept 1992. Even when there was a follow-through on the way up, only then when price levels sets a new high for the new month of January can we claim a validation & confirmation. The classic opening gap was indeed a price reversal even after touching its previous low @1.1986 before making a follow-through to the upside. This was in line with the extension levels of the DXY @103.55 high that gave way for a corrective move lower until today currently below 100 basis point.  Alternating trade sequence with the DX Futures Short @103.48 is a strategic move to cover any adverse / contrary price direction from the prevailing major trend as prices for CABLE are well within a down trend in spite of its recent rally. Therefore never discount the probability of price pullback in either direction. This provides traders the ability to maintain an ' UNBIAS' stance in their market analysis. CABLE is trading @1.2594 as a new high for January can find some resistance @1.2775 - 1.2880 levels. That is there would be more interest for CABLE to build up its momentum as long as the USD does continue to trade weaker.
Long
by megatrade101
Correlation Trade To WatchKeep an eye on this correlation setup over the coming days and weeks. The correlation is falling apart between AUDCAD & NZDCAD as you can see in the box on the right. You will notice the left box, when the spread got to approximately 400 Pips the correlation began to return, handing those in the trade a great return. The spread is currently approximately 200 pips, we could see it widen over the coming days and weeks. One should be ready to take positions if we see the spread get to approximately 400 Pips.
Long
by unique4x
Gold VS Silver : Pick the right one either for long or short !The US election is taking place as I am writing these lines... As a protection, a lot of investors and traders are willing to add some gold (or silver) to their portfolio, which sounds like a great idea because of the uncertaincy of this very particular event. But on that strategy, you should be careful to the one you are picking, weither you go for long or short (depending on your own scenario of the vote outcome). Before the beginning of November, gold and silver were quite correlated. But since the 31st October, this correlation has changed : silver tends to get stronger than gold . Whatever the reason of that could be, here is the conclusion you should take for your precious metals' investments : - Better use Silver for long positions - Better use Gold for short positions Moreover, if you guys strongly believe that this situation will remain for the next few trading sessions, you can also try to initiate an arbitrage position : buying silver AND selling gold, so that you could take profits from the difference.
OANDA:XAUUSD
by AlexandreNygal
1
Prediction of the S&P500 and NIkkei based on financials and CPIIn the following content i will explain how you can forecast the market with CPI (inflation) and Financials: If we look at our figure we can say a few things, i will assume them below: 1. ABN AMRO (a dutch Financial) is highly correlated to the NIKKEI225 index. 2. Since nearly May 2016 we can see that the CPI (inflation)-chart has change 5 times. If we look at the Nikkei225 index we can see a few things: when the inflation in the US rose, the Nikkei225 fell 4 out 5 ( a chance of 90% or mathematical: a chance of 0.900). Using maths we know that ABN AMRO has an statistic correlation of 0.70 < r < 0.90 (70% - 90%) to the Nikkei225. Conclusion: The fInancials are following the NIkkei225, and in turn the Nikkei is following the US CPI (inflation) in a divergence/opposite movement. 3. We can use the inflaton from the US as a staircase for the movement in the S&P500 (on this moment a consolidating market) Sources: Bloomberg Markets, ING Technical Analyses NOTE: I don't make any predictions, making decisions based on my reports is at you'r own risk!
INDEX:NKYEducation
by tmp_cox
6) The Japanese market will help timing the collapse (US+EU)August 15, 2016 Hello folks ! So almost everything is written on the chart. Don't take it for granted, as I do not possess a crystal ball. However, one thing is clear: prices that are displayed vary across brokers' platform(s) for a battery of reasons (Futures, Market Makers, Bid/Ask spread or average price etc.) There is one thing to take back home though: 50% and mean reversion has always been one of the keys. The signal is clear here: 17500 is the target and short should be triggered. It also acted as a strong resistance many many years ago :)
INDEX:NKYShort
by UnknownUnicorn569872
1
WhiteHorse Finance Correlation HistogramCorrelation Histogram Type Description Zero Correlation Histogram - The stock pair is concentrated in the correlation coefficient zero. - Case the diversification, Zero type will Overweight of the portfolio. - And, Zero type are often low volatility. Type A Correlation Histogram - The stock pair is concentrated in the plus high correlation coefficient and minus high correlation coefficient. - The A type will underweight of the portfolio. - This is not a normal distribution. Type B Correlation Histogram - The stock pair is concentrated in the plus high correlation coefficient. - The B type will underweight of the portfolio. - This is not a normal distribution. Type C Correlation Histogram - The stock pair is concentrated in the minus high correlation coefficient. - The C type will underweight of the portfolio. - This is not a normal distribution. dataunion.tistory.com
NASDAQ:WHF
by DATAUNION
AUDUSD NZDUSD 5M - Correlation ArbitrageCorrelation arbitrage - Published 04.08.2016 Please change timeframe to 5 minutes. I'm not recommending an arbitrage play at this time. I'm only trying to open up the eyes of traders to these 'arb' plays. AUD and NZD are high correlated due to their interlocking economiesand both trade at a fair spread to the USD. So when you see these pairs go their separat ways there is usually a way to profit. First you have to look at a fairly low timeframe 5M does it for me, also when you look at the divergence always look at a long time graph (Tradingview isn't displaying enough data) minimum of 2 months of data. See attach photo. If you trade small enough you can afford to keep the position even it moves rather hard against you and you don't have to close a floating loss untill the pairs are correlated again.
by kniedoborski
NZDJPY Could Rally After Tonight's BoJNZDJPY could be getting ready to run higher after tonight's announcement by the Bank of Japan. The BoJ is suppose to increase their stimulus package and if they do by the amount which is expected or by more we should get a sell-off in the Yen pushing this pair higher. If it happens we will be looking to correlate the Long NZDJPY with a Short in AUDJPY which will greatly reduce my directional risk. With proper money management I can be dead wrong on my NZDJPY call yet still make a profit.
Long
by unique4x
1
Is the S&P500 overrated on this moment? Maby DB has influence..Maby there is coming a very hard fall in the S&P500 soon, but why? If we look our graph were i plot GOLD, DB (deutsche bank) and the S&P500. We can make a prediction of the S&P500 based on deutsche bank. Deutsche bank is crashing hard last time with company results. And if we look at our figure we can understand that the S&P500 is in a bullmarket and also correlated to DB. We also known that there are into the S&P500 a lot financial institutes that really affects the stockprice of DB. If we make a prediction about the S&P500 we can say three things: - MACD and MACD-signal will cross each other, were we go under zero (this means a sell signal) - RSI is to high for a to long period (this means a sell signal) - Bollinger bands are highly in volatility (there could be happen something negative or positive) - MA will crosses under the Basis of the Bollinger bands (this means a sell signal) - DB is correlated to S&P500, Gold is oppositing them Information derived from Bloomberg, ING TA-FA
FX:SPX500Short
by tmp_cox