The Relationship between Oil Price & Kuwait Index-Is it breaking?
Date : 07/04/2010
Author: M.R. Raghu & Layla Al-Ammar
Sometime back we created this historical chart depicting oil price and Kuwait stock index since 1994. Last time when we checked this in 2008, the relationship showed a historical correlation of more than 90%. A plain look at the chart would also make one feel that they are not two different lines.
Tags: KSE, Oil
However what caught our attention is the recent divergence between oil price and KSE Index. While the long-term correlation (since 1994) stands at 93%, the last five years correlation is placed at 75%.
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