With April, ending, we can compute the correlations for the period March - April 2010, as we do at every end of month. Correlations are essential for proper diversification of investments.
Here they are:
For diversification we look for uncorrelated stocsk, those whose valeus above are clsoe to zero. They are marked in bold.
There are a few very interesting pairs.
- SPY and GS
- GS and VXX (volatility), and ECH (Chile)
- UUP and BZF (US dollar and Brazilian real)
- UUP and USO (US dollar and oil)