Search results

Doesn't exactly inspire confidence in the RBA... Reserve Bank's gold sale cost us $5bn

Haha, well what I was really on about was that China seems more volatile than Aus, so invest less in China as the risk is higher. It's not so much that one shadows but that one is more volatile. But that was really just my gag about the difference between correlation vs volatility.

Fair enough, let's forget about Aus/China. One traders strategy is called Pairs Trading. You follow highly correlated Pairs of stocks, maybe BHP/Rio, though I'm not sure how correlated these are. On occassion the two will move apart quite a bit, maybe one doesn't move up as fast as the other...

At 0.98 there is extremely high likelyhood that one is the cause and the other is effect. Which is why the ratio of movement isn't important. Correlated could be like subject & shadow. If shadow is twice size then it moves twice as much. If you want same effect between Aus and China...

Haha, that'd be interesting. Correlation is direction and relative size. So if China goes 6, 10, 8, then we are 100% correlated if we go 3, 5, 4.

Wholly clap! The Financial Review are reporting that the correlation coefficient between China's and Australia's GDP is now 0.98 (98% correlated) compared to 0.25 in the '90s. China's CPI is up 5.1% in a year, they have raised rates twice and signalled more on the way.

i'm sure you're right, however there is an alternative which could make sense. if you go back to the very beginning, was the year of the first day known as year one because it's the first year, or was it known as year zero because there hadn't been a full year yet? this would determine where the...

Well it's a bit difficult to tell because I think his policy is pretty much to always hold gold as a hedge, and he frequently comments on it. He believes that the world currencies were wrongly taken off the gold standard which has allowed each country to print too much currency whenever there's...

Oh yeah he has many strategies that he talks about, gold is obvious pure capital gains etc. But I think it would be hard for him to flip right now. Apart from you need capital gains to flip, also is that he uses the U.S. tax laws 10:31 exchange which says you can sell CGT free so long as you buy...

I've read a little more on Kiyosaki so perhaps I can comment. According to Kiyosaki, he started making his money from businesses but moved those profits into real estate and paper assets. Now holds 80% of his assets in realestate & paper. He apparently is not D&G on investments and is not...