Weekly Regression Analyses (publication reference ‘RAWE‘) investigate and illustrate the interdependence between global equity markets (‘congruence’). First in the collection, five exhibits give a global overview. Then each market is examined in turn, plotting its incremental changes against those of a specific global reference index (‘M9’ Composite) in which the market being examined is not included. A table to the side of the scatter plot demonstrates the effect of ‘contamination’ if the relevant index were included (i.e.: M10 Reference).
The variables of the current regression formula (intercept/alpha and slope/beta) are used to calculate and plot expectations (projections) for a set of global scenarios, based on past interdependence.