In Asia, China Is Least Correlated To The US Market

By Andrew Stotz of Become A Better Investor

Jan 16, 2019 at 4:31 AM EST

The US market has the lowest correlation with China, Thailand, and the Philippines.

In Asia, China and Thailand have the lowest correlation to the US market

In Asia, China and Thailand have the lowest correlation to the US market | #ChartOfTheDay

Ranked by past 5 years correlation
Lowest correlation with US: China, Thailand, and the Philippines
Highest correlation with US: Taiwan, Singapore, and Hong Kong

Two major crises in the new millennium

Two major crises in the new millennium | #ChartOfTheDay

Impact on the S&P 500 in the past two major crises
Dot-com bubble: (48%)
Global Financial Crisis: (54%)

China has been uncorrelated to the US in the past two major crises

China has been uncorrelated to the US in the past two major crises | #ChartOfTheDay

We’ve looked at the correlation with the US market during the two major crises
China has been uncorrelated, a possible explanation is the Chinese regulation not allowing foreign access to its stock markets

Disclaimer:

This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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