This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.
Summary:
Gold, short-term treasury bills, long-term treasury bonds, the spread between the long-term treasury and corporate bonds, 5-month volatility, and 1-month volatility are uncorrelated or negatively correlated with the S&P500 making them good candidates for a role of a hedge asset.
5-month and 1-month volatility as exchange trade products, and also the short-term government bills and long-term government bonds able to play a role of a safe haven asset.
Correlation analysis of the S&P500 and TNX shows that the correlation structure is not consistent from data frame to data frame.
Silver Wheaton Corp was a top 10 stock pick recommended to I Know First subscribers on June 11th for the 1-month time horizon. SLW had a strong signal of 29.70 and a predictability of 0.14. As predicted, SLW surged 27.99%.
Silver Wheaton Corp. (Silver Wheaton) is a mining company, which generates its revenue primarily from the sale of silver. The company's shares have jumped by 30% so far in 2014. SLW estimates that its 2014-sales will reach about 36 million silver equivalent ounces, which is slightly higher than its sales back in 2013.
Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.
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