correlation

Stock Market Pit

Should You Make Portfolio Decisions Based Upon Historical Correlations?

Market correlations explain to us the similarity in performance and behavior by different types of assets. For investors,  correlation comparisons might be between two commodities (NYSEARCA:DBC), two stocks, a stock and a commodity, or even a stock and an index. Should correlations be used to make investment decisions? Over the past three years, the Technology Sector SPDR ETF …

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Volatility: Friend or Foe?

Stock market volatility is frequently portrayed as an evil force that all investors should strive to avoid. However, embracing volatility (ChicagoOptions:^VIX) rather than avoiding it can be extremely lucrative. On 12/17/14 we told our subscribers the following via our Weekly ETF Picks: “The VIX has been on a tear, gaining almost 40% since early December. Here’s …

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