What does “Period” mean?
A. Correlation coefficients can be calculated over various time periods ranging from ten years to 40 years. The longer the time period selected, the fewer results will be available because many commodities and stocks simply do not have long histories. In addition to correlation coefficients for the specified time periods, the website also shows the correlation value of the time period displayed in the chart, which may be less than 10 years. It is useful to examine the correlation coefficients for all time periods that display above the “One vs. One” charts to determine if the correlation values are consistent over time. The less consistent the correlation coefficient is historically, the more likely that it is a coincidence, the less likely that it will hold true going forward, and the less likely that the markets will respond as expected.
