Similarly, one might expect price activity in Euros and T-bonds to be similar. Conversely, the Swiss Franc and the Dollar Index should have opposite reactions to the same market input. A primary rationale behind the continuing bull market in stocks has been declining interest rates. For years traders have made a very non-fundamental connection between the silver and soybean markets. Heating oil and crude oil-yes.
Some brief explanation is required.
Conversely, two markets that always closed contrarily to each other would have a coefficient equal to -1. A 0 value indicates no correlation whatsoever. Remember, the amount of change is irrelevant, which can account for differences in trend.