4 ms·
Any two time series which move broadly in the same direction will be 'correlated' if you compute the correlation on price levels, whether they have any predicti
by throwaway13qf85 13y ago
Any two time series which move broadly in the same direction will be 'correlated' if you compute the correlation on price levels, whether they have any predictive power or not.
Correlation on price levels is meaningless, only correlation on price differences or returns is meaningful.