U2 fans will recognize the title from the All That You Can't Leave Behind CD. Ahem.A reader asked what sectors do and do not correlate to the energy sector. The best way to look at the question is to compare sector ETFs for all ten S&P groups. You can click on the chart to make it bigger. The energy sector is in black. It seems to have a very low correlation with a lot of sectors. I thought this was interesting.
2 comments:
Dave Landry, the swing trader, has long noted that energy and analogous commodity stocks are capable of trading independently of the overall market.
I would say Mr. Landry has it correct.
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