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Correlation

MGTI's Correlation with GBTC is Uncanny!Shares of MGTI have strongly corrilated with shares of GBTC and now the shares of MGTI are selling off into earnings while GBTC has rallied. A sharp pop in shares of MGTI is very possible due to the action of GBTC as off late. MGTI has also ramped up their bitcoin mining opperations buying 2000 more Antminer S9 miners. With these new miners alone MGTI will be able to generate 22 Million annually pre tax. I would consider MGTI a STRONG BUY right now. Full discloser I am a shareholder of MGTI. I am not a shareholder of GBTC.
OTC:MGTILong
by coltsrule7
1
EUR–XAU–USD Correlation…. Economic and non-economic risksI compared the correlation between Euro_ Gold_ and Dollar_ on a combined chart, and tried to figure out the periods when Euro_ and Gold_ reacted inversely to DXY_ trend. I distinguish the two factors effecting gold_prices: USD_weakness, risk appetite. Focusing on the non-economic risks, I recall these critical events since November.2016. - US election risk release and Trump rally - Netherlands and France elections - Brexit uncertainty (effective until T.May triggered Article 50) - Comey’s testimony effect on Trump administration - North Korean tension (excessive reaction in gold_prices) Except US elections (after which USD_ smashed all its rivals), maybe we can say that the gold_markets bought the other risks listed and sold them back, which broke the Euro_Gold Correlation. During other times, correlation seems quite normal, where USD weakness or strength has driven the prices of Gold_and_Euro_ in parallel. At the final point as of now: Gold_prices still ranging within 1250-1300, but Euro_ appreciated well compared to last quarter of 2016. In economic terms, USD is weaker than before (FED less hawkish) and EUR is stronger supported by hawkish ECB (following long years of dovishness). Taking all above as a deuce point, I plan to take long-term positions on (stronger USD/weaker EUR) basis, which I see more probable.
TVC:DXY
by CitRoN_RouGe
10
Correlation study on gold prices and US10Y bond yieldsTaking 1st of January 2015 as the starting point, I overlapped gold prices and US10Y bond yields to review the correlation between these. The scales are by percentages taking 2015/01/01 level as zero point. The correlation is apparent as we know about it. I noted two points in this chart: (1) The correlation cycle is diverging since the beginning of year 2017. Personally, I take the starting point of this divergence at mid-December 2016 when Trump announced that his economic policy would not favor strong USD, and this speech badly shocked the markets who were holding great expectations on USD. (2) As of today, gold prices recovered well back to price levels before US election, on the other side US10Y bonds yields are still much above their November.2016 levels, This might be due to the quantitative tightening actions of FED. Recently, US10Y bonds yields are defending the 2.100-2.200 band, but the general bias is on further decrease side with a big risk.
FX_IDC:XAUUSD
by CitRoN_RouGe
3