tag:blogger.com,1999:blog-10803994.post2894243762578061058..comments2022-11-04T06:07:12.277-07:00Comments on Inconsequential Ramblings: Oil CorrelationsArindamhttp://www.blogger.com/profile/02255900658178865531noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-10803994.post-68326758050100077022011-04-28T11:41:27.967-07:002011-04-28T11:41:27.967-07:00the impact of higher crude prices on the bottom li...the impact of higher crude prices on the bottom line of corporations is common knowledge to the layman and your point about the negative correlation in 2011 has already been addressed in the article.<br />In fact I would advise you to look at a chart in this article - http://tickersense.typepad.com/ticker_sense/2007/12/sp-500-correlat.html <br />The higher correlation is due to the way the indices are constituted especially the S&P 500 which is market-weighted hence the run up seen by crude oil impacts the index proportionally.Arindamhttps://www.blogger.com/profile/02255900658178865531noreply@blogger.comtag:blogger.com,1999:blog-10803994.post-55652084966473391792011-04-12T11:17:28.502-07:002011-04-12T11:17:28.502-07:00Hmm....you have considered years which do not idea...Hmm....you have considered years which do not ideally give you the correlation between crude prices and stock indexes..... indexes are increasing after recession and hence you see a positive correlation.....ideally there should be a negative correlation if some more macro economic factors come in.... higher crude prices sucks liquidity and hence has a negative effect on markets....2011 you have seen a negative correlation since crude has increased drastically with Middle-east crisis..Maverickhttps://www.blogger.com/profile/02550554030179092149noreply@blogger.com