Tag Archives: correlation

Correlation with Bond Yields

Hat tip to Gökhan Kula for sending this along.  For the few years I have been trading, bond yields have been strongly correlated with stocks.  Stocks go up when bonds go down, so much so that I regard SPY and … Continue reading

Posted in Economics | Tagged , , | Leave a comment

Thoughts on Correlation

Mean reversion is aided by volatility, and momentum trading is aided by relative strength.  I have been exploring the distribution of relative strength.  Market strength and breadth are handily characterized by the mean and standard deviation of this distribution.  It … Continue reading

Posted in Indicators | Tagged , , | Leave a comment

Relative Strength Distribution

I saw a question on David Varadi’s blog about how to compute relative strength.  That’s probably the wrong place for such a question, but it got me thinking about the distribution of strength as a measurement of market correlation. First, … Continue reading

Posted in Indicators | Tagged , , , , | Leave a comment