Negative Correlation and Trading

[Largesse]

If we use the movements of the Dow as a constant, which of the following trade able instruments would be considered strongly negatively correlated with the Dow:

Gold
Oil
Corn

USD/EUR
USD/JPY
USD/GBP
USD/SGD

Nasdaq 100
Lyxor Brazil
FTSE 100
DJ Stoxx 600


any insights would be greatly appreciated

 

[skyQuake]

Put options...

I seriously doubt the Nasdaq or FTSE is neg correlated with the Dow, let alone strongly. I know for a fact that a study conducted a few years ago has Dow Nasdaq as R^2 = 0.76

 

[CanOz]

The recent correlation of the EURUSD would suggest that the USDEUR would have a inverse or NEGATIVE correlation to the DJIA.

I'll try for some others, but i doubt that others are more negatively correlated.


Cheers,


CanOz

 

[CanOz]

If we use the movements of the Dow as a constant, which of the following trade able instruments would be considered strongly negatively correlated with the Dow:

Gold
Oil
Corn

USD/EUR
USD/JPY
USD/GBP
USD/SGD

Nasdaq 100
Lyxor Brazil
FTSE 100
DJ Stoxx 600


any insights would be greatly appreciated

I can't post both charts, but from what i can get my hands on, the USDSGD is the most inverse correlated of the instruments you listed.

CanOz