Is Brazil Correlated to Chinese Iron Ore?

 |  Includes: CDCAQ, EWZ, FXI, PGJ, VALE
by: Erik Bethel

I don't remotely pretend to be a chartist or technical analyst, but the other day something caught my eye--the potential correlation between Brazilian stocks and Chinese iron ore.

The first graph shows Chinese landed iron ore prices (in the Port of Tianjin) for iron ore (Fe content 63%) courtesy of the Steel Index. The next chart (with much dampened dips) shows the BOVESPA (Brazilian stock market).

Click to enlarge

Click to enlarge

Disclosure: I do not own any stocks mentioned.