Picking up where we left off in Part I
WSTRF , URNM
At r =0.3434 should we consider this relationship significant? No, however, keep in mind that URNM is now the only ETF that holds shares of WSTRF, so while it might not look significant on paper, keep in mind that in reality there is a significant relationship. Sometimes I am using the word "relationship" in place of the word "correlated." Keep in mind that these two words are different but also hold similar meanings. Lets not get bogged down by bullshit semantics and jargon.
EU , UROY
r = 0.8538 yes highly correlated.
URG , UCO
I explained in Part I (https://www.reddit.com/r/Radio_chemistry/comments/162wwcs/understanding_correlation_coefficients_and_how_to/ ) how and why I am using UCO in place of Oil. Is the relationship between UCO and URG significant, in my opinion No
URNJ , UUUU
r = 0.8734 highly correlated. I am going to using a lot of URNJ graphs here. Keep in mind that the data for URNJ only goes back to roughly early February of 2023 so there are much fewer data points to use than for most of the other instruments. Therefore, we might consider that correlation coefficients involving URNJ are a bit little less accurate.
URNJ , URA
r = 0.8409 , not surprised here, they appear highly correlated
URNJ , CCJ
Ok, there may be reason why r is so very not correlated. This one was rather more interesting and just to show how very very favored CCJ is over URNJ, that said I expect this r value might change as time goes on and spot Uranium climbs above $80 per pound. Very excited to see how the relationship between CCJ and URNJ continues to play out.
URNJ , XLE
r = 0.2255 not significantly correlated
WEAT , UCO
A little divergence from Uranium but I wanted to show how the relationship between Oil and other commodities might work. Using WEAT here as a proxy for ZW, however, it does suggest that wheat prices are highly correlated to the price of Oil.
XLE , UCO
In my opinion, I would consider the relationship between XLE and UCO significant at r 0.6792
XLE , SPY
r = 0.0709 not significant at all
CEG ,CCJ
Another interesting relationship between a nuclear utility and a nuclear supplier. Not very significant at r = 0.3098 but something to keep an eye on.
UUP , UUUU
Energy Fuels relationship to the $. Not significant at all.
DYLLF , BNNLF
at r = 0.7841 I would consider this relationship significant, and ever go as far as to say that most all the juniors are highly correlated to each other.
WSTRF , GLATF
at r = 0.3679 I would say this relationship is not significant. I would also suggest that WSTRF is somewhat uncorrelated to most all other names in the Uranium space. When you look at the charts it strikes me as though WSTRF is just plain different from the rest and I wonder if there is some room for a study of non-linear coefficients that I might dive into later on down the road.
That about wraps things up for now, I am going add a bit about using tradingview to get this information and why I think tradingview is not a good program for this metric.
CCJ , DXY
The coefficient given for the relationship between CCJ and the DXy for this period of time is 0.60. Notice how similar it is to the 0.70 value we got using excel? While using trading view does easily give you this metric notice that the way the data is displayed is clearly subpar compared to the scatter plots we have using excel. This is why I dont like using tradingview for everything. Don't become so dependent upon tradingview that you become crippled without it.
CCJ , UUP
again at r = 0.63 it appears that using UUP as a proxy for the DXY might have some merit to it.
Gold , DXY
I wanted to include this chart of the DXY and gold to show that when you get r = some negative number between 0 and -1 you have an inverse relationship. Gold and the DXY r = -0.77
Bitcoin , DXY
Again; an (inverse relationship where r = -0.82) even stronger inverse relationship than gold. This will also be a focus going down the line as in the coming weeks I might study the BTC sector a bit more and crunch some correlation coefficients.
That about wraps up what I wanted to say for this week. I am not going to do every single relationship within the energy or the Uranium sector as by now most anyone who has read this far can do this for themself.
Keep in mind that these correlation coefficients are subject to change and not always a rock hard probability of events to take place. Like anything involving statistics take things with a grain if salt
