Wednesday, December 3, 2014
Wait, are IWM and GLD supposed to be positively correlated?
I'm going to love taking those Econ stats courses if I go back to university.
Because then I'll be able to explain precisely in numbers why the above chart is freaky, instead of just saying "hey look at that! If you throw out Monday, gold has been positively correlated to the R2K at some amount that's easily above 0.6."
Any reason why the two should be correlated? Any reason at all?
Is there a reason to be long USD short IWM right now?