Negatively Correlated Sectors

Hi All,

I’m looking to compile a list of stock market sectors that tend to have negative correlations in terms of stock price movement.

My understanding is that such an example can exist between the Oil sector and the Airline sector. Both are dependent on the price of oil, with oil price rises possibly meaning increased profits for an oil company and lower profits for an airline which, in theory, can mean share prices movements in line with the changed profitability. (vice versa also)

If you can think of any other such negatively correlated sectors, feel free to share.

Thanks In Advance for all responses.

Hi

In investment seminars the typical example is umbrellas and suncream.

SM

I’d suggest euro-denominated equities and foreign-denominated government debt http://uk.finance.yahoo.com/q/bc?t=2y&s=%5ESTOXX50E&l=on&z=m&q=l&c=inxg.L
are negatively correlated (or at least have been over the past two years) but you really are going to have to calculate the correlation coefficient and the R-square to see if this is actually correct.