• Alexandre Harfouche

    DH, I have been monitoring the currency pair for some time and its correlation to the SPX, the spread between the pair and the SPX is at unprecedented levels and have been there for 3 years now, last time something similar occurred? 2008, the pair surged and the SPX tanked. The currency pair reflects perfectly the very valid point you are making. Kind regards

    • http://www.dynamichedge.com/ DynamicHedge

      Thanks for the email, love the chart. Lots of these relationships have been dislocating for a while now. It’s fairly common in bull markets for correlations to relax.

  • Pingback: Friday links: not rocket science - Abnormal Returns | Abnormal Returns()

  • haitao

    Thanks for the post. If we look at the exports, Canada is heavily dependent on natural gas exports to US, while AUD is more dependent on global growth and iron ore exports. The spread may widen if CA economy remain dismayed.

  • Pingback: National Arbitrage: Normalized Relations | Dynamic Hedge()

Mobile Theme