Nowhere To Hide In Europe – Equity Correlations Are Historically High

Submitted by Eric Bush via Gavekal Capital blog,

Equity correlations have spiked to the highest level in years presumably thanks to Brexit. The 20-day correlation between the GKCI DM index and the MSCI World Index is at the highest level since 2011.

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The correlation between EM and DM stocks is at its highest level since 2010.

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And the 20-day correlation between UK, French, and German stocks and the MSCI World Index is at the highest level we have ever seen going back to 2001, surpasing levels experienced during the European debt crisis. The same is true for the entire region as a whole actually.

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Lastly, the 65-day correlation for UK stocks and the MSCI World Index is also at the highest level on record going back to 2001.

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via http://ift.tt/2984Iol Tyler Durden

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