Understand how markets move together — and when they don't
Move almost identically. NQ is more volatile.
+0.95
Strong Positive
Very tight. YM is less volatile, lower beta.
+0.92
Strong Positive
Russell leads risk-on/off shifts. Divergences signal sector rotation.
+0.85
Strong Positive
Moderate. Correlation increases during risk-off events (both sell together).
+0.55
Moderate Positive
Inverse — risk-on (stocks up) = risk-off (bonds down). Key relationship.
-0.45
Weak Negative
Risk-on = stocks up + yen weakening.
+0.45
Weak Positive
Moderate positive. Oil up = economic growth expectations up.
+0.40
Weak Positive
Weak inverse. Strong dollar can pressure equities, but not always.
-0.35
Weak Negative
Weak positive through dollar link.
+0.30
Weak Positive
Near zero long-term. Both can rally together in certain regimes.
-0.15
Weak Negative
Correlations shown are long-term averages and can change significantly during market stress, regime shifts, or unusual events. Always verify current correlations before making trading decisions based on cross-market analysis.
If you're long ES and long NQ, you don't have two positions — you have 1.95 positions (95% correlated). Understanding correlations prevents accidental over-exposure and helps you read cross-market signals before they show up on your chart.