Positively Correlated – Since the financial crisis, the daily returns of global equities and the WTI oil price have been highly correlated. According to Source, the multi-asset research outfit, since 2009 the average correlation between these assets is around 0.4 compared to an average of around 0.0 during the previous two decades. What’s more, at the height of the financial crisis and throughout 2012 the correlation between daily returns of global equities and WTI moved as high as 0.8. The correlation is currently just over 0.5.
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