Correlation for all markets?

Beginner Questions
1

Just wondering if there is a good source out there that explains the correlation between all markets {bonds, equity, forex, gold, even cattle, etc.} … I am personally not looking for a chart because I already know what is linked. I am looking for an explanation of ‘why’ everything is correlated the way it is.

Also if it could be broken down to region/country that would be awesome!

or if there are any experts on this that could elaborate.

To reiterate, I am not looking for a chart showing that AUD/USD is correlated to EUR/USD, but a reason why.

Thanks in advance!

2

As Gold as it Gets | Intermarket Correlations | Learn Forex Trading

Not sure if you’ve read through that part of the BP school yet but I believe it answers some of your questions.

3

That must be the ‘new’ school because i don’t remember that part … but thanks, that helps a little but looking for a little bit more.

But thanks for it, I will have to read through all of that and see if anything else clicks in.

Thanks

4

Not the answer to your question, but I thought I’d post this link, I found it surprisingly interesting.

Correlation and dependence - Wikipedia, the free encyclopedia

5

Everything is correlated because the the entire world and it’s economies work together. In one way or another the price of cattle in BFE affect eur/usd. Maybe not on a noticeable scale, but it does. Countries GDP’s are effected by everything which effects currencies and stocks/bonds/futures.

Think of it on a bigger scale as far as the entire world as a whole and the way people work together and against each other. To answer your question would take a billion page book.

6

Yes, I know it is all linked … I was asking why though.

and commenting off of that, that is why IMO algorithm’s make the money more & more everyday. A computer engineer can make money knowing nothing about the fundamental markets & just use the equation’s involved.

It’s only a matter of time before someone figures out the key that turns it all.