CorrlensCorrlens
Correlate

Correlation Analysis

Fed Funds Rate vs Producer Price Index by Industry: Gold Ore and Silver Ore Mining: Gold Ores

FEDFUNDS vs PCU2122212122210

-0.699

Strong inverse

When one moves up, the other tends to move down.

F

Fed Funds Rate

FEDFUNDS

F

Producer Price Index by Industry: Gold Ore and Silver Ore Mining: Gold Ores

PCU2122212122210

Jun 1, 1985 — Dec 1, 2017Daily391 data pointsFREDFRED

AI Analysis

The strong negative correlation between the federal funds rate (Series A) and the producer price index for non-durable goods (Series B) suggests that as the Fed raises interest rates, prices for these goods tend to decrease, reflecting tighter monetary conditions. This relationship is statistically significant and consistent, with nearly half of the observed periods moving in the same direction, indicating that investors should pay attention to interest rate changes as they may influence pricing dynamics in this sector. However, it's important to consider that while the correlation is robust, it does not imply causation, and other external factors could also be influencing these trends.

Time Series

Relative Performance

Green: FEDFUNDSGray: PCU2122212122210250 of 391 points (sampled)

Who Moves First

in sync

Fed Funds Rate and Producer Price Index by Industry: Gold Ore and Silver Ore Mining: Gold Ores tend to move at the same time.

After testing 13 timing shifts, the strongest relationship was -0.699 (they moved in opposite directions).

Stability

Rolling Correlation

How the correlation evolves over time. A stable line means the relationship is reliable; large swings signal regime-dependent behavior.

Dashed line = zero correlationRange: -1 to +1

Do They Crash Together?

Correlation by Market Regime

How these series behave when markets are rising, falling, or diverging. A correlation that holds in drawdowns is very different from one that only works in rallies.

Both Rising

-0.151

55 periods · Return correlation when both series rose

Both Falling

-0.094

48 periods · Return correlation when both series fell

Diverging

-0.293

146 periods · Return correlation when series moved apart

R-Squared

48.8%

Share of variance in one series explained by the other.

Trend Agreement

47.5%

How often both series moved in the same direction period-to-period.

Overlap Quality

391

Robust shared window — 391 usable pairs.

Significance

p < 0.001

95% CI: [-0.746, -0.644]

Scatter

XY Regression

-0.71024681010.6246100200300400495Fed Funds RateProducer Price Index by Industry: Gold Ore and Silver Ore Mining: Gold OresData pointsFit (r = -0.699)

Pipeline

Data quality details

Pipeline Summary

391 paired data points survived the daily window.

Raw input

861

391

Normalized

861

391

Prepared

861

391

Aligned

391

391

Invalid removed

0

A: 0 / B: 0

Duplicates removed

0

A: 0 / B: 0

Alignment drops

470

A: 470 / B: 0

Series A

F

FEDFUNDS

FRED · 861 raw → 861 prepared

Series B

F

PCU2122212122210

FRED · 391 raw → 391 prepared

Sign agreement

100.0%

How often both values share the same sign.

Zero crossings

3

Estimated crossover points between normalized spreads.

Slope

-25.2274

Linear regression slope.

Intercept

267.0200

Linear regression intercept.

Related Extremes

Highest and Lowest Correlated

PCU2122212122210

Producer Price Index by Industry: Gold Ore and Silver Ore Mining: Gold Ores

View More

Highest

No additional saved correlations yet.

Lowest

No additional saved correlations yet.

Saved 2 hours ago · ID: fred-fedfunds-vs-fred-pcu2122212122210-daily