I was a bit tired at the time and forgot to include an explanation to the last graph:
This one maps the 1 year close prices for a NASDAQ Copper Index, US 10-Y Bond prices & an emerging market fund. The first correl is between Copper & US10, which is mostly negative. The second correl just below it is b/w copper & EEM, which shows a very high positive correlation for most of the period.
Instruments used in the charts for your own research/analysis are as folls:
- NQCIHGTR: NASDAQ Copper HG Copper Index TR
- DBC: Invesco DB Commodity Index Tracking Fund
- DBB: Invesco DB Base Metals Fund
- DBE: Invesco DB Energy Fund
- US10: US 10 Year Government Bonds
- EEM: iShares MSCI Emerging Index Fund (representative of emerging markets)
If you want to compare Chinese equities with the listed instruments you can use the FXI (iShares China Large-Cap ETF), like the chart below, which shows the strong 5Y positive correlation b/w Chinese equities and copper:
Notes:
- The correlations used for all the charts are 60 candle period (~2 month) for the 1Y and 12 candle period (~3 month) for the 5Y above. No method applied to the durations. I decided to use it based on the stuff I read. But there may be better periods for a more meaningful analysis.
- The DBC was used as the commodities index because I couldn’t find the Thomas Reuters Jeffries CRB Index, which is the more widely used index for commodity analysis. It was my first time using trading view so maybe it’s listed somewhere and I couldn’t find it.