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Correlation

Portfolio Optimization With BNBIs BNB correlated to other assets? The average correlation ratio amongst cryptocurrencies stood at 0.72, a high value indicating a strong relationship between the returns of cryptoassets.Amongst ten of the largest marketcap cryptoasset, BNB was the least correlated asset displaying an average correlation of only 0.58.BNB displayed a medium positive correlation with other large cryptoassets: only 0.57 with BTC, 0.52 with XRP, 0.64 with LTC, and 0.63 with ETH. In comparison, BTC and ETH, the two largest cryptoassets, displayed a strong positive correlation(0.82). Correlations with traditional financial assets BNB appears to be a unique asset: not only is it uncorrelated with traditional financial assets, but it is also one of the lowest correlated assets with other cryptocurrencies.Hence, the next subsection focuses on the construction of model portfolios, including Bitcoin (BTC) and BNB, along with the backtesting of the performance of these portfolios.
Education
by Berzerk_invest
11
DXY and EXY correlates negatively !! EUR/USD SHORTHy trader, good mood and profitable trades ! 💲 In the 1h chart we can see a negative correlation between DXY and EXY. While DXY broke out of the falling wedge with a nice kick, we saw EXY break out of the rising wedge. In the Dollar index I see a nice bottom formation with HLs and a HH. In the Euro Index we can see a top formation with LLs and LH ! My trading plan for this week: EUR/USD SHORT I would like to mention that all I post are just options and my own opinion ! Always trade with SL, and do not risk more than 1% of your portfolio (max 3%) per trade. Unfortunately, my english is not so good and I work with google translate, but if you have any questions I will be happy to answer them . ➡️If you like my posts smash the like👍👍 button, comment or follow me.⬅️ Thanks for reading my ideas, Trade save!!
TVC:EXY
by TR7z
16
GOLD PRICE/VOLUME CORRELATION - GC1! - MONTHLYThank you for your likes, comments and shares! Much appreciated! This is an idea not a financial advise. __________________________________________________________ A quick look at the some of the Gold key points. It probably will provide you an extra look on the price action. See how the volumes have increased throughout the time. Some parabolic moves and little corrections. But, overall, the Gold price will probably continue to rise. Some probable lower price ranges are identified and might be good entry points for a long entry. Holding long term position or dollars cost averaging.
COMEX:GC1!Long
by Diallo_Charts_Ideas
Crude oil rises with US 10Y weighing on Nasdaq!Today's a bit bumpy for Nasdaq. The tech-heavy index has reached a key zone(flip zone) . In my opinion, correlation come into play again! Crude oil has risen steadily for the past few days. It might add inputs to future costs as oil plays a very important role in the modern society. I know the concept of ESG but until No. of new energy cars outnumbers traditional ones. We know the economic outlook and inflation can impact the US 10Y yield. Normally, better economy and high inflation would push up the yield. What's more, the rising yield could weigh on the stock market and we all what happened in Feb. Job data(NFP) will be released this Friday. This might be the old play that good news is bad for stocks or vice versa. So how high could crude oil go? I would say 70 is a key level.
OANDA:WTICOUSD
by JICPT
Who Is Driving BTC Price? MicroStrategy Based On Elliott WavesHello traders! Today we want to show you how strongly MicroStrategy and Bitcoin are correlated, so it can be telling us who is driving the price of Bitcoin. As you can see, charts are in tight positive correlation and looking at the wave structure of MicroStrategy from Elliott Wave perspective, seems like one more leg down is missing to complete a five-wave cycle within wave (C), therefore BTC may stay down or sideways for some time. From psychological point of view, many new Crypto traders are buying dips now in fear, desire, and greed not to miss again, so in Crypto market is always dangerous when the price turns for 50% from the highs, so we have to be very smart and patient. We actually believe that BTC is still trading in a correction, it's just a higher degree corrective phase which can be a bigger one and it may take some time to make traders insecure and impatient before bulls show up again. Be humble and trade smart! If you like our idea, then please like and share it. Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
NASDAQ:MSTR
by ew-forecast
6
Elliott Wave Analysis: Energy Sector May Face Some WeaknessHello traders and investors! Today we will talk about energies, specifically Crude oil and Natural gas in which we see interesting developments. As you can see, both oil and gas are in tight positive correlation as energies are in recovery mode, but a rise looks corrective. Oil has slow, choppy and overlapped W-X-Y complex wave structure, while gas has A-B-C correcitve rally. Well, with current sharp and strong decline below channel support line, seems like bears are taking the lead, at least for a short period of time, so watch out for more weakness in upcoming days/weeks. Be humble and trade smart! If you like what we do, then please like and share our idea! Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
NYMEX:CL1!Short
by ew-forecast
Strong Correlation with Market Brings Crypto SouthStarting from March last year, that is from the start of the massive bull after COVID-19 lockdowns, strong correlation can be seen between the crypto market and the stock market, not in magnitude, for sure, but definitely in direction. This wasn't the case before and this is the reason of the crypto revival to begin with. Few exceptions have been witnessed, most notably the GME squeeze which brought the stock market down but didn't affect crypto, and the recent BTC saturation, even if the directions can still be seen to be correlated. Another notable thing is that the recovery of the stock market is much faster than the crypto market. For the above reasons and based on what's going on right now (also see the linked ideas), I expect a south direction for all crypto assets till the end of the month, including Ethereum.
COINBASE:ETHUSDShort
by MontyMacht
EW Analysis: Bearish Looking Treasuries May Push USDJPY HigherHello traders! Today we will talk about treasuries (10Y US Notes) and its negative correlation with USDJPY. As you can see, 10Y US Notes turned sharply down after a corrective movement in wave 4), which means that it can be now on the way back to lows for wave 5), especially if breaks below channel support line. At the same time USDJPY may continue higher as we know they are in tight negative correlation, so be aware of more upside on USDJPY with room even up to March 2020 highs and 112 area. Trade smart! If you like what we do then please like and share our idea! Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
CBOT:ZN1!
by ew-forecast
Gold recovered from daily loss with correlation plays! Hello everyone. Happy Labour day! As I mentioned previously in my published idea. Gold has strong negative correlation with US 10Y yield. With recent rising covid-19 cases and new variant detected, people started to worry about potential impact on the global economy. I can see stocks, BTC as well as US10Y yield dropped in the past 2 days. Dollar and Gold rose as safe heaven assets. Now gold will come to retest previous high and supply zone I marked a couple of days ago. Will it pass the zone? I don't know! How far will it go depend on how bad the situation is. It's harsh...I watched videos about what happened there. My heart is broken. Sometimes, It's hard to become emotionless under such circumstances even as a well-trained trader. Trade safe and take care!
TVC:US10YLong
by JICPT
COIN vs BITCOINI haven't seen anything about this yet, so here is a chart comparing the price of COIN with the price of BITCOIN. I think that it's safe to say that so far there is a direct correlation between the two. Not saying they won't diverge or converge at some point... but that might be a signal of sorts. It will be interesting to follow this pair and see how they relate to eachother as time goes on, especially during large BTC price swings. I assume that this direct correlation will continue. Let me know what you think. // Durbtrade
NASDAQ:COINLong
by Durbtrade
2
US 10Y to form bearish pattern amid NQ gaining momentum Hello everyone. It's been a while since I reviewed US 10Y yield last time. Now the control low has been violated, indicating sellers started to take control. From the daily chart, we can see that bearish downtrend has been formed with a control high zone just above. With the weakness of US 10Y yield, stocks are recovering from the low created by the news of possible capital gain tax rate hike. BTC also suffered a lot by approximately 30% from the fresh record. I'd like to use the yield as an odd enhancer for trading other assets, such as stock and futures. The correlation between the yield and other assets can help us to increase the winning ratio a lot. Trade safe and stay safe. Do give me a like and follow if you like my idea.
TVC:US10YShort
by JICPT
BTC is the MASTER of THE UNIVERSE at least the crypto universeLike evil Skeletor... BTC has its crypto MINIONS, binance, cardano, polkadot, ripple, uniswap, theta, and litecoin..... When there is stress in the crypto market, there is an incredible amount of correlation in the charts!! REMEMBER THIS, you have to look at the flagship, to see what colors the rest of the armada will wave. LOOK AT THE LIGHT GREEN BOX!. You always here everyone whining about correlation... but it is made very obvious here. You can use this link for analysis of correlation. charts.coinmetrics.io Quote: (in case you wondered why there are so many stupid leaders!) "Success in almost any field depends more on energy and drive than it does on intelligence. This explains why we have so many stupid leaders." - Sloan Wilson
by Ifyouonlyknew
1
Using Longer-Term Correlation to Predict MarketsIn the chart above, I display a daily chart of gold at the top, followed by the graphical 90-day correlation coefficients between gold and various asset classes. I do this kind of analysis at times when I feel a major inflection point is incoming. It is very handy when everything is moving quickly, since you can make the right choice after the dust settles. Moreover, you can anticipate what will happen and get into positions during the brief period of pandemonium. I will say from experience that being on the right side of certain markets before the final directions are determined is perhaps the most profitable way to trade markets. It is also extremely difficult to do and requires a thorough analysis of each major interrelated asset that is involved. In my opinion, and based on these correlation readings, I am essentially bullish on gold, bearish/neutral on everything else. And, when you really think about it, it makes a ton of sense. Let me explain briefly. I am not sure how anyone qualifies an asset class as "overbought," but just a quick glance at any equity index's monthly chart should be enough. All of them are so overbought that I do not feel the need to substantiate the claim with an indicator reading of any kind. The same goes for Crypto, except double. DXY and Oil are historically quite inversely correlated, and would imagine that they diverge as a result of a crypto-induced equities selloff. That's right - amazingly enough, it seems that the "safe haven" known as Bitcoin is actually what is holding equities up so high on the backend. I think. In any case, I hope this serves trading society well as volatilty soon approaches. -CorrPigEarningsMiss TVC:GOLD TVC:SPX TVC:DXY CURRENCYCOM:OIL_CRUDE BITSTAMP:BTCUSD
TVC:GOLDEducation
by UnknownUnicorn5511258
8
The Big Hedging is Coming; Bonds and VIX looking BullishThe market lately has been very unstable to say the least and has been willing to jump onto any boat it can in order to avoid inflation, However the price action we are seeing on the 30 YR seems to indicate that Inflation fears are overblown and that the Value if the Dollar index will likely remain stable. While looking through the charts i noticed that there was an unusually high correlation between the 30YR Bonds and the VIX: Starting March 3rd 2014 as marked by the green vertical line on both charts. You can see that most Green Months in the 30 YR results in a Green Month in The VIX. I assume this is because many investors buy bonds in times of market uncertainty as a hedge against potential downturns in the value of equities and securities. Todays Surge in Treasury Bonds could signal: A rise in Volatility to come, A downturn in the Stock market, and a Rise in both the Value and Confidence in the US Dollar.
TVC:US30Long
by RizeSenpai
8
US 10Y yield broke control low pushing stocks & commodities up! Hello traders, US 10Y yield just violated the control low zone on the daily chart, retreat to the lower part of the new range on the weekly. It's good for stocks and commodities as we saw NQ, copper, gold, silver all rally. Day close candle is important. I will check how it closes. As the yield goes lower, odds are on buyers side. You can check my linked idea below titled How things got linked up with one chart(FED, Gold,US10Y,NQ) However, I think the yield will go up again against the backdrop of strong economy recovery and rising inflation.
TVC:US10YShort
by JICPT