Wednesday, August 14, 2019

CPO and SoyBean Oil

There is a NETT positive correlation between CPO and SOYBEAN OIL in term of direction. It is not 100% positive correlation. The volatility magnitude of the are different despite the positive correlation. 

When you look at the monthly chart of the right, SoyOil did not retrace all the way down the bottom of the chart unlike CPO during the 2009 crash. Soyoil retraced exceed low during 2015 but CPO did not. To draw a total complete 100% correlation in magnitude is Super Dangerous.

On the weekly chart in the middle, towards 2018 end, CPO fall all the way to the low while SOYOIL holds up.

The Daily Chart on left, shows SOYOIL move up first while CPO continue south before finally makes a rally. 

Be cautious how one correlate CPO and SOYOIL movements, your timing can be off as shown on the charts above!

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