This chart summarizes the stability of a market's historic correlation against other global futures markets. The smaller the Correlation Stability number ... the more stable the correlation is to the near zero level over time. In a nut shell it provides an historic perspective to a static correlation value.
Correlation Chart Overview:
• Each correlation study is based on the market's % monthly return figure and not price.
• The dark blue line plots the 24 month rolling correlation from early 2000 to current month.
• The lighter blue lines plot dynamic high/low correlation levels that adjust to current market conditions.
• A correlation of +1 signifies a direct relationship while a correlation of -1 signifies an inverse relationship.
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.