RtS, I noticed that comparing the SOX with the $BPNDX in the reference seems to provide little, if any, correlation between the two indices. I am not sure what to make of this lack of correlation.
investorshub.com
Let me illustrate by making a simple table and comparing SOX values, and percent differences, with the $BPNDX. I made this table by "eyeballing" approximate numbers off the referenced charts, so the numbers could be off a little, but I am only trying to show the gross difference between the two indices and look at the correlation or lack thereof.
Pct Pct
- Date $bpndx Chg Sox Chg
Aug 98 23 190
Jan 00 33 43 750 295
Mar 00 35 6 1200 60
Jul 00 22 -37 1100 -8
Oct 00 18 -18 700 -36
Feb 01 23 28 700 0
Dec 01 13 -43 600 -14
Jun 02 14 8 400 -33
Sep 02 21 50 250 -38
Jan 03 34 62 300 20
May 04 30 -12 450 50
In some cases the indices move in the same direction, but one may move much more than the other. In other cases, such as between Jun 02 and Sep 02, the $BPNDX went from 14 to 21, a rise of 50 percent, while the SOX went from 400 to 250, a decrease of 38 percent.
Are these 2 indices supposed to follow each other? Also, I was surprised to see the $BPNDX move so quickly, on the order of 1 to 2 months, from a very high to a very low level, or vice versa. Some examples include Dec 01 to Feb 02 - 13 to 74, another example is June 02 to Aug 02 - 14 to 52, while the SOX went from 400 to 250, a major inverse correlation.
Don |
