First Growths mirror Shanghai stocks

The last few days have seen the Liv-ex Fine
Wine 50
hit a five-month high, as the index level rose above 300. Meanwhile
the Shanghai Composite
today lifted 1.6%, ending the year up 3.17%.

The correlation between the two indices is evident, as shown
in the chart below (all have been rebased to 100 on June 1st 2012).
While the S&P 500 has forged its own undulating upward path over the last
six months, the Shanghai Composite and Liv-ex 50 have mirrored each other’s

As we have previously observed, there has been a
strong correlation
between Chinese equities and the Liv-ex indices over the last two years. This
appears to be holding. By contrast, US and UK equities show a low correlation. Will
China continue to drive the fortunes of the Liv-ex 50 in 2013?

Liv-ex 50 vs Shanghai Composite

One thought on “First Growths mirror Shanghai stocks

  • January 3, 2013 at 4:41 am

    aw..i hire diay nako sila kay naa ko ipadakop na demon sa skul.shinigami pangalan delmo..hahah!


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