Posts Tagged ‘FTSE’

The Negative Correlation of BATS

April 10, 2009

Since the FTSE-100’s closing low of March 5th 2009 British American Tobacco has been negatively correlated to the index.

The beta of BAT over this time has been -0.2617 [1]. Undoubtedly a short-term phenom but rather startling nevertheless.

batsftse1

What can we take from this snippet of info? Perhaps more evidence of “sector rotation” and a rebuke to the idea that “money on the side” is re-entering the market.

Other big cap “defensives” are showing little correlation to the index. Imperial Tobacco is also showing a negative correlation but far slighter than BATS (a beta of -0.074) while Glaxo is showing a very slight positive correlation of +0.069.

mm

[1] For some reason Google’s dataset is missing 27th March for both the FTSE 100 and All-Share, I’ve simply taken that day out of the calculation for all the above.

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Newsnight: time for more despair!

February 15, 2008

The BBC’s flagship televisual news programme gets it wrong yet again when it comes to compiling a simple markets round up.

The FTSE-100 actually finished down 0.80 points on Valentines day 2008, not 80 points.

This follows a debacle in late November of not one but two cock-ups on consecutive nights. Radio 4 made the same faux pas while Newsnight editor Peter Barron admitted the mistake had been a repeat of earlier events.

For international readers: this is what a $7bn per annum state-funded broadcaster gets you!