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Ever feel like every chart you open is reacting to the same hidden drumbeat? That drumbeat has a name: correlation.
Why Everything Seems Connected (Because It Is)
On the surface, markets look like a busy city at rush hour—equities streaking one way, currencies flashing another, commodities rumbling in their own lane. But zoom out and it’s more like a choreographed dance. The steps vary, the music changes tempo, yet the dancers stay in time. That synchrony is correlation—the tendency for assets to move together, either in the same direction (positive) or in opposite directions (negative).
Correlation isn’t a mystical force; it’s a practical consequence of shared drivers. Think of interest rates, the U.S. Dollar, liquidity, and risk appetite as the “weather systems” of global finance. They sweep across asset classes at once, nudging prices with a tailwind or knocking them back with a headwind. The better you understand those systems, the earlier you can spot the change in wind.
