Saturday, October 31, 2009

Correlations Among All Currency ETFs and Gold

Here we go. The following table shows the correlations among all currency ETFs (plus GLD) for September and October 2009. This is extremely important for diversification of investments. It is a large image.

(please click to enlarge)

Uncorrelated Currencies

For proper diversification, what is of real interest is the uncorrelated currency ETFs. Here are the the most uncorrelated.

The Brittish Pound is the most uncorrelated currency with anything else.

-GBB with FXC (Pound, Canada, perfect 0.0 score), also with BNZ/BZF/CEZ, and similarly FXB/FXC
-GBB/AYT (Pound/Asia)

Gold and Currency correlation:

Gold is most correlated with:

- BNZ, BZF, CEW, DBV, FXA, FXC (New Zealand, Brazil, Emerging, G10, Australia, Canada)

Gold is most uncorrelated with CYB (Yuan)

These are the names of the ETFs:

Note: You may receive technical analysis and alerts of these currency ETFs, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool.

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