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Correlate

Correlation Analysis

Interest Rates: Immediate Rates (< 24 Hours): Central Bank Rates: Total for Canada vs Federal Funds Effective Rate

IRSTCB01CAM156N vs FEDFUNDS

+0.928

Very strong positive

When one moves up, the other tends to follow.

Jan 1, 1960 — Dec 1, 2023Daily768 observationsFREDFRED

AI Analysis

The strong correlation between Series A (IRSTCB01CAM156N) and Series B (FEDFUNDS) suggests that movements in these two economic indicators are closely related, with approximately 68% of the time they trend in the same direction. This alignment implies that changes in the interest rate set by the Federal Reserve are likely to have a significant impact on the other variable, making it a useful metric for investors and economists monitoring economic conditions. However, while they are in sync, the nuances of timing should be considered, as slight delays in response can affect decision-making; therefore, relying solely on this correlation without context could lead to misguided conclusions.

Timing Offset

in sync

IRSTCB01CAM156N and FEDFUNDS tend to move at the same time.

-6-5-4-3-2-10+1+2+3+4+5+6

Correlation at each lag offset (periods). Peak marked with dot.

Peak correlation at offset: +0.919 (13 lags scanned)

R-Squared

84.4%

Share of variance in one series explained by the other.

Trend Agreement

67.7%

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

Overlap Quality

768

Deep shared window — 768 usable pairs.

Significance

p < 0.001

95% CI: [0.846, 0.958] (approximate)

Time Series

Rebased to 100

Green: IRSTCB01CAM156NGray: FEDFUNDS36 of 768 points (sampled)

Scatter

XY Regression

-0.630246810121415.79-1.080246810121415.26Interest Rates: Immediate Rates (< 24 Hours): Central Bank Rates: Total for CanadaFederal Funds Effective RateData pointsFit (r = 0.928)

Pipeline

Data quality details

Pipeline Summary

768 paired observations survived the daily window.

Raw input

768

861

Normalized

768

861

Prepared

768

861

Aligned

768

768

Invalid removed

0

A: 0 / B: 0

Duplicates removed

0

A: 0 / B: 0

Alignment drops

93

A: 0 / B: 93

Series A

IRSTCB01CAM156N

Interest Rates: Immediate Rates (< 24 Hours): Central Bank Rates: Total for Canada

FRED · 768 raw → 768 prepared

Series B

FEDFUNDS

Federal Funds Effective Rate

FRED · 861 raw → 861 prepared

Sign agreement

100.0%

How often both values share the same sign.

Zero crossings

13

Estimated crossover points between normalized spreads.

Slope

0.8669

Linear regression slope.

Intercept

-0.0659

Linear regression intercept.

Saved 13 hours ago · ID: fred-irstcb01cam156n-vs-fred-fedfunds-daily-20260406-i05lbe