he 24-month correlation of -0.78 is attributed by the 54% climb in the NASDAQ during the Nov 98-Nov 2000 period, resulting from the great technology rally and impact of aggressive interest rate cuts by the Federal Reserve (Sep, Oct and Nov 1998). This contrasted with the Euro, which fell 15% in 1999 and 13% in the Jan-Nov period in 2000. Yet this negative correlation was reversed in the ensuing periods of the study as the NASDAQ rally floundered, while the Euro decline flattened. ; This continued to the extent of creating a full reversal of trends, which eventually recreated a negative correlation between the two variables in the 1-month period ending in November 2000.
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