Current value
0.0652
Range
Percentiles
Correlation
EWQ vs SPY daily returns
Chart
Relative move
-4.9%
1m-1.6%
3m-0.1%
ytd-8.1%
1yvs SPY — negative = EWQ lagged
Market Regimes
| Regime | Macro axis | Change | Min | Max | Mean | Corr |
|---|---|---|---|---|---|---|
| Dot-com bubble / TMT mania 1995-08 → 2000-03 |
liquidity/valuation expansion | -3.1% | 0.15 | 0.21 | 0.18 | -0.0164 |
| Dot-com bust / post-bubble disinflation scare 2000-03 → 2002-10 |
valuation compression/disinflation | -6.3% | 0.14 | 0.2 | 0.17 | 0.0605 |
| China-WTO / housing-credit / commodity boom 2002-10 → 2007-10 |
growth/credit expansion | +40.2% | 0.15 | 0.27 | 0.21 | 0.0802 |
| GFC / deleveraging / dollar shortage 2007-10 → 2009-03 |
credit stress/liquidity squeeze | -1.1% | 0.18 | 0.28 | 0.24 | -0.0340 |
| Policy-led rebound / euro-sovereign-crisis overlay 2009-03 → 2012-07 |
easing/backstop | -38.9% | 0.13 | 0.26 | 0.2 | 0.0518 |
| Secular stagnation / QE / low inflation / duration bull 2012-07 → 2020-02 |
disinflation/low rates | -40.3% | 0.09 | 0.17 | 0.13 | 0.0285 |
| Pandemic shock / liquidity crash 2020-02 → 2020-03 |
liquidity shock | +22.5% | 0.07 | 0.11 | 0.09 | -0.0749 |
| Policy bazooka / monetary euphoria 2020-03 → 2020-11 |
liquidity impulse | -3.8% | 0.08 | 0.1 | 0.09 | -0.0937 |
| Reopening reflation / fiscal boom / supply bottlenecks 2020-11 → 2021-11 |
growth reopening | -11.2% | 0.08 | 0.1 | 0.09 | 0.1710 |
| Inflation shock / duration crash / aggressive tightening 2021-11 → 2022-11 |
inflation shock | +8.8% | 0.07 | 0.09 | 0.08 | -0.0001 |
| Disinflation rebound / AI-led narrow bull / higher-for-longer 2022-11 → 2024-09 |
disinflation + narrow equity leadership | -16.2% | 0.07 | 0.1 | 0.08 | 0.0350 |
| Disinflationary easing / resilient growth / AI capex under oil-shock test 2024-09 → now |
disinflation under stress | -9.4% | 0.06 | 0.08 | 0.07 | 0.0525 |
What is this indicator?
As most of naive country-to-country indicators, it does not compare one economy to another. This is more about structural differences in the economies and market regimes.
France's CAC 40 is a "Global Luxury ETF." LVMH, Hermès, Kering, and L'Oréal dictate the movement. These stocks have high gross margins (like Tech) but depend on physical consumption by the emerging middle class in Asia.
In a way, this ratio is a proxy for Chinese Credit Impulse. When China stimulates its economy, the first thing that happens is a spike in demand for French luxury and German cars.
If you see headlines about "China Stimulus" or "Chinese Retail Sales beating expectations," EWQ/SPY will rip higher. When hedge funds want to bet on a Chinese recovery but are too scared to buy Chinese stocks directly (due to political risk), they buy France as the "clean" derivative.
Related price ratios
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Canada vs U.S. market index ratio (EWC / SPY)
Compares the price performance of Canadian equities (EWC) relative to the U.S. S&P 500 (SPY).
Germany vs U.S. market index ratio (EWG / SPY)
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