Correlation of S&P 500 to Oil Prices

by: TickerSense

It is a long standing belief that when oil prices are up the market is down, and vise versa.

Below we highlight the correlation of changes in the S&P 500 to changes in the price of oil, with oil prices plotted as well. Over the long term, since 1988, the correlation coefficient was positive 44% of the time, negative 56%, and averaged -0.05.