**As seen in Macro Walk report 03/24/23, subscribe at cablefxm.co.uk/reports
The cross-asset correlation section of our most recent Macro Walk report showed short-term coefficients diverging from long-term in CNY vs global equities. In other words, the 100-day correlation between the yuan and risk remains statistically valid while the short-term is not
However, looking the last couple of months, the CNY direction has not diverged much from the MSCI All World Equity Index. The correlation breakup is more a result of a decouple in daily % returns between the two
For the record, the relationship fell sharply in March and now the 25-day correlation is at the lowest since November
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