Why Are Equities And Oil So Positively Correlated Since The Financial Crisis?

Positively Correlated  - Since the financial crisis, the daily returns of global equities and the WTI oil price have been highly correlated. According to Source, the multi-asset research outfit, since 2009 the average correlation between these assets is around 0.4 compared to an average of around 0.0 during the previous two decades. What’s more, at the height of the financial crisis and throughout 2012 the correlation between daily returns of global equities and WTI moved as high as 0.8. The correlation is currently just over 0.5.


Saved Articles
X
TextTExtLInkTextTExtLInk

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Opt out of occasional 3rd party offers


Congrats! Are you a smart person? We have a limited time offer for sophisticated and loyal readers like yourself.

Sign up today and get three months free

Use coupon code VIP19 or click on the button below

Limited time offer only expires 8/31/2019 or next 30 now just 2 subscribers whichever comes first – please do not share this discount with others

 

0