India’s Correlation With Global Markets Approaches 10-Year Low

Gold Silver Reports (GSR) – The disconnect is most pronounced in the bond market, where India’s 10-year yields have almost no correlation with a portfolio consisting of global sovereign debt. A shrinking correlation between financial markets in India and those in the rest of the world is one reason to buy its assets. The weighted average correlation of India’s currency, bonds and stocks with those in other global economies fell to 0.32 last month, approaching a more than 10-year low of 0.29 set in November. The reading was as high as 0.68 in 2010, data compiled by Bloomberg show. Global investment managers say this divergence provides them with an asset class that can smooth out returns in their portfolios.               

READ MORE