Correlation Matrix

[Freetrade_Team1 (Freetrade_Team)]

@adavid

Gold for example is zero to negatively correlated to equities. When equities are down, gold goes up and vice versa.

Vlad shared some useful info about this recently -

All that glitters

Have not tried, but look at the comparison of Gold to S&P 500 for the last 30 years (1985 to 2015): [SPG]. The correlation is negative, which is a sign of one going up when the other goes down. But the correlation is very weak, quite close to 0, meaning you cannot rely on this strategy in every case. I have also highlighted the “crisis” areas (1987 recession, 2001 dotcom and 2008 credit crunch). This is where gold pays for itself to an extent. It goes dowin in late 80s whilst the market goe…