E Mini Correlations

ESUSD Commodity   6,132  3.25  0.05%   
The current 90-days correlation between E Mini SP and Wheat Futures is 0.08 (i.e., Significant diversification). The correlation of E Mini is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

E Mini Correlation With Market

Average diversification

The correlation between E Mini SP 500 and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding E Mini SP 500 and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to E Mini could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace E Mini when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back E Mini - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling E Mini SP 500 to buy it.

Moving together with ESUSD Commodity

  0.62MMSI Merit Medical SystemsPairCorr
  0.61T ATT Inc Aggressive PushPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
HOUSDCLUSD
HOUSDZCUSX
MGCUSDKEUSX
ZCUSXMGCUSD
ZCUSXKEUSX
CLUSDZCUSX
  
High negative correlations   
ZRUSDZCUSX
ZRUSDMGCUSD
ZRUSDKEUSX
HOUSDZRUSD
ZRUSDCLUSD

Risk-Adjusted Indicators

There is a big difference between ESUSD Commodity performing well and E Mini Commodity doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze E Mini's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

E Mini Related Commodities

One prevalent trading approach among algorithmic traders in the commodities sector involves employing market-neutral strategies, wherein each trade is designed to hedge away specific risks. Given that this approach necessitates two distinct transactions, if one position underperforms unexpectedly, the other can potentially offset some of the losses. This method can be applied to commodities such as E Mini, pairing it with other commodities or financial instruments to create a balanced, market-neutral setup.
 Risk & Return  Correlation