ETF correlation
Source: http://stockweb.blogspot.com/2009/10/etf-correlation.htmlPosted on Wednesday, October 7th, 2009 | In Investing Lessons, Stocks to Watch
I already posted some articles focused on assets classes correlation like the one about a style=”FONT-WEIGHT: bold” href=”http://stockweb.blogspot.com/2009/08/commodity-equity-correlation.html” target=”_blank”correlation between commodities and equities/a. It shows correlation coefficient for precious metals commodities (gold, silver,platinum), crude oil and major US equity indices (Samp;P 500, DJIA).br /br /Correlation analysis is key factor for successful portfolio diversification. Positive correlation means that the prices of shares or ETFs move up or down together. They will probably be impacted in similar way.br /br /If the prices of shares or ETFs move in different directions we call it negative correlation. In this case we achieve high degree of diversification.br /br /There is one useful website where you can do analysis a style=”FONT-WEIGHT: bold” href=”http://www.assetcorrelation.com/” target=”_blank” rel=”nofollow”asset correlations/a by using ETF. It has matrix for countries, sectors or bonds. Another interesting function is correlation over time where you can check the development of correlation coefficient for two tickers.div class=”blogger-post-footer”http://stockweb.blogspot.com/atom.xmlimg width=’1′ height=’1′ src=’https://blogger.googleusercontent.com/tracker/6675237082283386719-2909489200597825808?l=stockweb.blogspot.com’ alt=” //div
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Last 5 posts by Vlada Kynsky
- Jim Rogers about commodities, China and others. - October 25th, 2009
- How to invest in gold now. - October 18th, 2009
- Treasury inflation protected securities ETF - October 4th, 2009
- How to invest in gold. - July 11th, 2009
- Bullish on British Pound. - May 12th, 2009
 About Vlada Kynsky (http://stockweb.blogspot.com/)
Vlada Kynsky studied economics and gained work experience as SAP analyst in information technology. His origin is in Czech Republic but due to different work assignments lived in many European countries. He explores mainly emerging markets. In his research he focuses on ETF and international stocks. Another area of interest are technology stocks. |
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