Monday , 24 June 2024

Financial Correlations That Should Be Monitored Regularly (+2K Views)

[Below is a huge list of correlations I have discovered over the years with hyperlinks to articles that analyzed each.] If I only had some software to get automatic updates of these charts.

By Alfred Sung ( as posted on his Seeking Alpha Instablog.

Positive correlations mean that if one goes up, the other goes up too. Negative correlations mean that if one goes up, the other goes down.

Positive correlations:

1) Silver premium Vs. Silver Price

2) Baltic Dry Vs. Industrial Commodities

3) Baltic Dry Vs. Copper

4) Copper Vs. S&P

5) Oil Vs. Dow Jones

6) Agriculture Price Vs. Health of Economy

7) Agriculture Vs. Fertilizer Price

8) CRB Index Vs. Commodity prices (oil, agriculture, metals)

9) MZM velocity Vs. Inflation

10) MZM velocity Vs. 10 year U.S. treasury yield

11) Case-Shiller Index Vs. Housing Market Index

12) Capacity Utilization Vs. Inflation

13) Rhodium Price Vs. Automotive Industry

14) Housing Price Vs. Rise of Wages

15) O-metrix Score Vs. Stock Value

16) Outlay Spending Vs. Hyperinflation

17) Gold Money Index Vs. Gold Price

18) Stock Dividend to Bond Yield ratio Vs. Stock Price

19) War Vs. Silver Price

20) Exchange Rate Vs. Treasury Bond Valuation

21) PMI Vs. GDP Growth Rate

22) Gold Lease Rate Vs. Gold Price (link2) (link3)

23) Economy of Australia/Canada Vs. Industrial Commodities

24) Jim Sinclair’s Fed Custodials Vs. Gold Price

25) LCNS silver net short positions Vs. Silver Price

26) ECB Deposit Rate Vs. Euribor and Deposit Facility (Deposit ECB)

27) China Gold Imports from Hong Kong Vs. Gold Price

28) AUD/USD Vs. Iron Ore

29) Chinese yoy GDP growth Vs. Chinese yoy Power Consumption (link 2)

30) Chinese yoy Power Consumption Vs. Chinese yoy Power Production

31) M1 and Gold

32) Obesity Vs. Debt

33) Global Equity Prices Vs. Global EPS revisions

34) Total Public Debt Vs. Interest Payment on Debt

35) U.S. Bond Yields Vs. Interest Payment on Debt

36) Federal Reserve Balance Sheet Vs. S&P

37) Federal Reserve Balance Sheet Vs. Gold Price

38) Balance Sheet Ratio Fed/ECB Vs. EUR/USD

39) China Manufacturing PMI Vs. Base Metal Prices

40) COMEX stock level Vs. CFTC Open Interest

41) Manufacturing component of Industrial Production Vs. CRB Metals Index

42) Net Short Interest Gold Vs. Gold Price

43) Central Bank Net Gold Buying Vs. Gold Price

44) LCNS silver Vs. Silver Open Interest

45) Bond Yields Vs. Gold Price

46) Gold Miners Bullish Percent Index Vs. GDX

47) Daily Sentiment Index Gold Vs. Gold Price

48) Commercial Net Short Interest Vs. Silver Price

49) Food Stamp Participation Rate Vs. Unemployment Rate

50) Bitcoin Price Vs. Gold Price

51) Credit Expansion Vs. Economic Health (second link)

52) Gold Volatility Vs. Gold Price

53) Total Stock Market Index Vs. GDP

54) Brent Crude Oil Vs. WTI Crude Oil

55) EPS revisions Vs. P/E Ratio

56) Citigroup Surprise Index (CESI) Vs. S&P

57) EPS revisions Vs. S&P

58) Dow Theory: Dow Jones Transportation Average Vs. Dow Jones Industrial Average

59) Margin Balance Vs. S&P

60) Federal Debt Growth Vs. 10 Year Treasury Yields

61) Fed Funds Rate Vs. 10 Year Treasury Yields

62) Total Central Bank Balance Sheet Vs. Gold Price

63) Large Commercial Short in Copper Vs. Copper Price

64) Bond Yields (<3%) Vs. P/E Ratio

65) ECB Lending (LTRO) Vs. Deposits at Banks

66) Disposable Income Vs. Housing Prices

67) Fixed (conventional) Mortgage Rate Vs. Treasury Yields

68) Adjustable Mortgage Rate Vs. Federal Funds Rate

69) Silver Vs. Bitcoin

70) Open Interest Trend Vs. Price Trend

71) Wage Inflation Vs. Consumer Price Index (NYSEARCA:CPI)

72) Marginal Cost of Gold Suppliers Vs. Gold Price (link 2)

73) Durable Goods Orders Vs. S&P

74) Gold ETF Trust (NYSEARCA:GLD) Vs. Gold Price

75) PMI (leading indicator) Vs. S&P Revenues

76) Federal Funds Rate Vs. LIBOR Rate

77) Lumber Price (leading indicator) Vs. Housing

78) Building Permits (leading indicator) Vs. Housing

79) Pending Home Sales Vs. Mortgage Applications

80) Employment-Population Ratio Vs. Real GDP per Capita

81) Trade Surplus/Deficit (leading indicator) Vs. Currency Strength/Weakness

82) German Treasury Yields Vs. U.S. Treasury Yields

83) Consumer Sentiment Index (leading indicator) Vs. S&P 500

84) Bitcoin Price Vs. Bitcoin Users

85) Potemkin Rally Vs. Employment to Population Ratio

86) LME Copper Warehouse Stock Level Vs. Copper Contango

87) Art Price (leading indicator) Vs. CPI

88) Total Credit Market Debt Vs. Dow Jones

89) SGE gold deliveries (leading indicator) Vs. China Gold Imports from Hong Kong

90) Retail Sales Vs. Disposable Personal Income Per Capita

91) CRB Index Vs. Emerging Markets

92) Non Farm Payrolls Vs. Job Hires

93) Currency Debasement Vs. High Yielding Assets (Carry Trade)

94) Deposits over Loans: Excess Reserves

95) Food Price (leading indicator) Vs. Potash Price

100) Federal Funds Rate Vs. CPI

101) Full-time Vs. Part-time Workers (Recession)

102) GLD ETF Vs. COMEX Stock

103) GDP Growth Rate Vs. 10 Year Bond Yield

104) Depletion Curve Vs. Price Movement (silver, oil)

105) Managed Money Long and Short Positions (gold and silver) Vs. Gold and Silver Price (link)

106) GDP Vs. Trade Balance

107) Smart Money Flow Index (leading indicator) Vs. Dow Jones

108) Bank Deposits Vs. Deposit Rates

109) GOFO rate Vs. Gold Price

110) Federal Reserve Asset Purchases Vs. Bond Yields

111) Currency Vs. Bonds

112) Retail Sales Vs. Consumer Price Index (CPI)

113) Stock Buyback Vs. S&P

114) Yen USD/JPY Carry Trade Vs. Gold (link 2)

115) Yen USD/JPY Carry Trade Vs. Stocks

116) Leading/Coincident/Lagging Indicator Vs. Recession

117) Gold per Capita Vs. Income per Capita

118) GLD ETF Stock Vs. Total U.S. ETF gold Stock

119) Gold Repatriation Vs. Recession

120) Dividend Yield Vs. Bond Yield

121) Misery Index Vs. Gold

122) Palm Oil (leading indicator) Vs. Soybean Oil Vs. Crude Oil

123) Junk Bonds Vs. Stock Market

124) Junk Bonds Vs. Energy Junk Bonds Vs. Oil

125) P/E Ratio Vs. M/O Age Ratio

126) Tax Revenues Vs. Stock Markets

127) Employment to Population Ratio (leading indicator) Vs. Wage Growth

128) Equity Valuation Vs. Q Ratio (James Tobin)

129) Chapwood Index Vs. CPI

130) Working Age Population (15-24) Vs. CPI

131) ISM Manufacturing PMI (leading indicator) Vs. ISM Services PMI

132) Global FX Reserves Vs. Global Equities

133) Corporate Loan Charge-Offs and Delinquencies Vs. Federal Funds Rate (leading indicator)

134) Breadth Advance-Decline Line (leading indicator) Vs. Stocks

135) USD/CNY Vs. Crude Oil

136) USD/CNY (leading indicator) Vs. S&P

137) Corporate Profits (leading indicator) Vs. Employment

138) Debt to GDP (leading indicator) Vs. Default Rate

139) African Rand Vs. Silver

140) GDP Output Gap (leading indicator) Vs. Inflation

141) Yield Curve (leading indicator) Vs. Coincident Indicator

Negative correlations:

1) Copper Price Vs. Copper Futures Contango

2) Interest Rates (bond yields >3%) Vs. P/E ratio of gold mines

3) Non-Farm Payrolls Vs. Unemployment Rate

4) Federal Debt Held by Foreigners Vs. U.S. Bond Yields

5) Size of Governments Vs. Their Economies

6) Stocks Vs. U.S. Dollar

7) Silver Stock at CME Vs. Silver Price

8) China Reserve Requirements Vs. Shanghai Real Estate Prices

9) Capacity Utilization (leading indicator) Vs. Unemployment Rate

10) Net Commercial Short Positions Vs. Bond Yields (Alternative Site)

11) Net Non-Commercial Long Positions Vs. Bond Yields

12) % Change in Gold Vs. Real Interest Rates on 10 Year Treasuries

13) Shanghai Silver Premium Vs. Silver Price

14) Probability of Recession Vs. 10 year – 3 year Yield Spread (link 2)

15) Junk Silver Premium Vs. Silver Price

16) Wage Inflation Vs. Unemployment Rate

17) Initial Unemployment Claims Vs. S&P

18) Gold/Silver Ratio Vs. S&P

19) GLD Flows Vs. Shanghai Gold Premium

20) Unemployment Rate Vs. Real GDP (leading indicator)

21) Mortgage Rates Vs. Mortgage Applications

22) Single Family Housing Starts Vs. Unemployment Rate

23) Tax Revenue Vs. Personal Savings Rate

24) Change in Non-Farm Payrolls Vs. Change in Unemployment Rate

25) Fed Funds Rate Vs. Unemployment Rate

26) Labor Force Participation Rate Vs. Unemployment Rate

27) M1 Money Supply (leading indicator) Vs. CPI

28) GOFO Vs. Gold Premium

29) Shanghai Silver Inventory Vs. Shanghai Silver Premium

30) Misery Index Vs. Forward P/E Ratio

31) Flattening Yield Curve Vs. Fed Funds Rate

32) Oil Contango Vs. Oil Price

33) Business Inventory to Sales Ratio (leading indicator) Vs. GDP Growth

34) QE (leading indicator) Vs. Deficit

35) Credit Spread (leading indicator) Vs. S&P

36) Gold/Silver Ratio Vs. CPI

37) Temporary Workers Vs. Recession

Total: 178

These are a lot of correlations that you need to monitor on a day-to-day basis!

“Follow the munKNEE” on Facebook, on Twitter or via our FREE bi-weekly Market Intelligence Report newsletter (see sample here , sign up in top right hand corner)