An Historic Look At the Gold/Dollar Ratio [View article]
Further to JeffZ's comments:
When two variables have a significant negative correlation (and a strong theoretical basis for it), then any ratio or comparison of the two should use the inverse of one variable.
There is no reason to expect a ratio of negatively correlated variables to be stable over time.
An Historic Look At the Gold/Dollar Ratio [View article]
When two variables have a significant negative correlation (and a strong theoretical basis for it), then any ratio or comparison of the two should use the inverse of one variable.
There is no reason to expect a ratio of negatively correlated variables to be stable over time.