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In Asia, China Is Least Correlated to the US Market

In Asia, China and Thailand have the lowest correlation to the US market


 

  • Ranked by past 5 years correlation
  • Lowest correlation with US: China, Thailand, and the Philippines
  • Highest correlation with US: Taiwan, Singapore, and Hong Kong

 


Two major crises in the new millennium


 

  • Impact on the S&P 500 in the past two major crises
  • Dot-com bubble: (48%)
  • Global Financial Crisis: (54%)

 


China has been uncorrelated to the US in the past two major crises


 

  • We’ve looked at the correlation with the US market during the two major crises
  • China has been uncorrelated, a possible explanation is the Chinese regulation not allowing foreign access to its stock markets

 


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