In Asia, China Is Least Correlated To The US Market – ValueWalk Premium
China Correlated US Market

In Asia, China Is Least Correlated To The US Market

In Asia, China and Thailand have the lowest correlation to the US market

Q3 hedge fund letters, conference, scoops etc

China Correlated US Market


  • Ranked by past 5 years correlation
  • Lowest correlation with US: China, Thailand, and the Philippines
  • Highest correlation with US: Taiwan, Singapore, and Hong Kong

Two major crises in the new millennium

China Correlated US Market


  • Impact on the S&P 500 in the past two major crises
  • Dot-com bubble: (48%)
  • Global Financial Crisis: (54%)

China has been uncorrelated to the US in the past two major crises

China Correlated US Market


  • We’ve looked at the correlation with the US market during the two major crises
  • China has been uncorrelated, a possible explanation is the Chinese regulation not allowing foreign access to its stock markets

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