Gavekal Capital: Oil Most Significant Factor in 1 Week Stock Performance

Wednesday, February 19, 2014

Oil Most Significant Factor in 1 Week Stock Performance

Our factor scoring work reveals that stock price correlation to oil was the most significant factor in determining performance over the last week, with an R-squared of .95. The correlation to treasury bonds was the next most important variable followed by ROE.

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Over the last month, however, fundamental factors have been the big determinants of performance as valuation metrics and analyst estimate revisions rose to the top of the list.

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