I am so happy I found you all after the Josh Brown podcast. I have a lot of catching up to do and plan to subscribe. I just watched Nick's Gold video. Do you have thoughts on Silver as well or expect gold to out perform Silver. Thank you. Love your information!
Thank you, great video. This furthers my education into std deviations and correlation. I do have a question: I heard Nick say that a SD for the Vix is 8. How are Std Dev’s determined or calculated for each asset or class? Or should I go back to college? I may be the oldest student there! 😂
This is a superb, data-based method of analyzing actual return conditions to better identify relatively predictable future movements. A question on the specifics of your correlation method....for the correlation, are you comparing daily returns of each sector or security for the prior 30-day period or doing this more / less frequently than daily return....then from there I'd assume you're doing x-y scatterplot and calculating the correlation coefficient aka R-squared ? Thanks in advance.
Thanks very much, so glad you liked it! It's the 30-day trailing correlations of daily returns for each of those 5 sectors versus the S&P 500. The average sector correlation is 0.81, so taking it one step further as you mentioned would be an r-squared of 66%. Thank you for your question!
@@NickColasandJessicaRabe Thanks so much for taking the time to answer my question. I just have total reverence for the work you all share day in-day out to link / correlate current data with prior events and trends... it's incredibly insightful.
Concerted rally of 11 main sectors So yes correlation is at its best after the carry trade correction Market could rally again until Jackson Hole and the announcement or not of the so expected FED cut in September BUT we are certainly toppish on Soxx and in my opinion NVIDIA made its top of 2024 or at minima before election 😊 Druckenmiller sold 200 millions USD of his stake in NVIDIA (which represent the money put at the beginning I think) and Soros fund sold alphabet and Amazon So for me super7 will be for the next month at the best choppy 😅 But at the same time I think that we will be above 5600 on SPX in December 2024 We will see
question: so to construct this scatter plot chart that is the basis for the chart above, did you place S&P500 on one axis--but how did you derive the y-axis values? Are the y-axis value the AVERAGE of tech, industrials, discretionary, finance, and healthcare indexes? It's unclear to me how you built the datatable.
Thanks, Jessica. Super interesting illustration of the concept. Perfect length for the modern attention span!
Thanks very much!!
Excellent explanation Jessica. Keep up the great work and keep making me smarter. 🙂
Thanks very much for your kind words, so glad you found it useful!
I am so happy I found you all after the Josh Brown podcast. I have a lot of catching up to do and plan to subscribe. I just watched Nick's Gold video. Do you have thoughts on Silver as well or expect gold to out perform Silver. Thank you. Love your information!
very good work Jessica
Thank you!!
Great work Jessica, I am glad that we started following you after your appearance on TCF.
Thanks so much for watching and your support, we really appreciate it!
Great video. Clear explanation. I didn't appreciate the significance of the correlation.
Thank you, so glad you liked it!
Thanks for these indicators. Do you have any easy way we can access correlation data from a retail investor side of things?
Excellent points. Thanks Jessica
Thank you, so glad you liked it!
As always, very interesting !
Thank you for watching!
you cant do too much this material for us private investors ,, merci
Super useful! Thank you.
Thank you for watching, that's great to hear!
Awesome stuff! Thank you!
@@epeterson86 Thank you, I appreciate it!
Thank you, great video. This furthers my education into std deviations and correlation. I do have a question: I heard Nick say that a SD for the Vix is 8. How are Std Dev’s determined or calculated for each asset or class? Or should I go back to college? I may be the oldest student there! 😂
This is a superb, data-based method of analyzing actual return conditions to better identify relatively predictable future movements. A question on the specifics of your correlation method....for the correlation, are you comparing daily returns of each sector or security for the prior 30-day period or doing this more / less frequently than daily return....then from there I'd assume you're doing x-y scatterplot and calculating the correlation coefficient aka R-squared ? Thanks in advance.
Thanks very much, so glad you liked it! It's the 30-day trailing correlations of daily returns for each of those 5 sectors versus the S&P 500. The average sector correlation is 0.81, so taking it one step further as you mentioned would be an r-squared of 66%. Thank you for your question!
@@NickColasandJessicaRabe Thanks so much for taking the time to answer my question. I just have total reverence for the work you all share day in-day out to link / correlate current data with prior events and trends... it's incredibly insightful.
@@nlabanok Thank you, we really appreciate your kind words and support!
wow thank you!
Great. Thanks.
Thanks for watching!
good video
Thank you!
Does that mean its a good time to open a long position? thx
Concerted rally of 11 main sectors
So yes correlation is at its best after the carry trade correction
Market could rally again until Jackson Hole and the announcement or not of the so expected FED cut in September
BUT we are certainly toppish on Soxx and in my opinion NVIDIA made its top of 2024 or at minima before election 😊
Druckenmiller sold 200 millions USD of his stake in NVIDIA (which represent the money put at the beginning I think) and Soros fund sold alphabet and Amazon
So for me super7 will be for the next month at the best choppy 😅
But at the same time I think that we will be above 5600 on SPX in December 2024
We will see
question: so to construct this scatter plot chart that is the basis for the chart above, did you place S&P500 on one axis--but how did you derive the y-axis values? Are the y-axis value the AVERAGE of tech, industrials, discretionary, finance, and healthcare indexes? It's unclear to me how you built the datatable.
thank you
Thanks for watching!