Correlations.. CME – Commodity Research Group

August 27, 2019 by Jim Colburn Leave a Comment

Using the CME’s excellent cross-asset correlation tool, here, I looked at what is moving with what… Over the past month crude oil correlated highly with interest rates… Note that correlations with Eurodollars (ED), at -.61, 10 Year Treasuries (TY), -.73, and Treasury Bonds (US), -.61 are based on price movement (prices up, interest rates down)… Correlations over the past six months are about half at -.29, -.38 and -.35… Both markets are highly sensitive to any news that changes global growth expectations…

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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