Dichotomy between market pricing and reality
- Thread starter M.W.
- Start date
Would need to check. But the yen mostly lost value from 2012-2015. In Sept/Oct 2008 the yen gained 65%. That is absolutely massive for a G8 currency.
The correlation between usdjpy and oil is not stable at all. The chart you posted yourself tells that story. Look how usdjpy was range bound while oil prices kept rising. Only very recently did usdjpy break out and make a strong move higher.
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Hard to get more correlated. Indicator added on bottom with bands narrowed to 0.20 and -0.20 to amplify just how close the two data sets are. And historically the case as well with Crude and Yen.
Wtf are you taking about? How is that indicator on the bottom really defined? Are you aware how correlation coefficients are calculated?
In any case, you can from pure visual inspection see that the recent strong move in yen has almost nothing to do with crude or Brent.
Are you for real or just joking now?
In any case, you can from pure visual inspection see that the recent strong move in yen has almost nothing to do with crude or Brent.
Are you for real or just joking now?
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You're the clown. Default TradeStation Correlation Indicator.
Denying reality and you've been watching anything but Yen pairs for the last 20 years.
C ya.
Take a look at the above daily and weekly data based correlation coefficients above. You seem to love to just disagree all the time even when you look dumb.
For anyone who cares about being more rigorous: the return correlation is usually a much better measure than price correlation, and that's just a starting point for a more rigorous analysis. However, return correlations also show that USDJPY and Crude correlations are relatively unstable.
For anyone who cares about being more rigorous: the return correlation is usually a much better measure than price correlation, and that's just a starting point for a more rigorous analysis. However, return correlations also show that USDJPY and Crude correlations are relatively unstable.
When correlation between two assets near zero, they aren't highly correlated.
https://www.investopedia.com/ask/answers/032515/what-does-it-mean-if-correlation-coefficient-positive-negative-or-zero.asp#:~:text=When r (the correlation coefficient,the linear relationship is weak.
The chart you posted shows oil and yen have not very correlated lately. Here is another example confirming this.
https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=FXY+USO&startDate=11/01/2021&endDate=03/24/2022&timePeriod=1&tradingDays=20&months=36
He probably got up a little too early today. What gets me is that he, without knowing the slightest about others, questions their experience and knowledge by actually posting information that contradicts his statements in the same post. And that is why I asked what indicator he posted on the bottom. If it was indeed the correlation coefficient then that would mean that on that time compression and smoothing window the assets were perfectly uncorrelated and recently only mildly correlated with correlation jumping all over the place. I have shown that this holds true on dailies and weekly time compression as well. Though the app only performs price correlations, much better to convert to log returns first before assessing correlations or running a regression analysis.