Jul 31 2007, 05:38 PM
QUOTE(ejleemy @ Jul 31 2007, 05:30 PM)
Actually there are some negative correlation between bonds and stocks. Normally one goes up and another goes down.
There are cases where both going the same direction, like during a deep recession, bonds and stocks both will become worthless.
Another case where both going up is when there are too much liquidity on the market, people have enough money to buy both stocks and bonds causing both to go up together.
Technically
0 = no correlation
-1 = full negative correlation
its at -0.x..... somewhere between 0 and -1.
You are a statistician, based on your previously post. There are cases where both going the same direction, like during a deep recession, bonds and stocks both will become worthless.
Another case where both going up is when there are too much liquidity on the market, people have enough money to buy both stocks and bonds causing both to go up together.
Technically
0 = no correlation
-1 = full negative correlation
its at -0.x..... somewhere between 0 and -1.
, just joking.Instituitional Bonds and gov bonds are traded in millions a block so it is not accessible for retailers. But if you are rich enough to buy a few millions then can ringing up the investment house or bankers to do it for you.
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