S&P 500 Correlation to Canadian Index

For those of you who are invested in Canada with your ETF portfolio you would probably like to see how the S&P/TSX index relates to the S&P 500 index. So, here is a nice chart!

You will note that over the past few months, the two have been correlated rather closely.
S&P 500 Versus S&P TSX Chart Correlation
What does this mean?

Because the two are moving so closely together, it adds little if any risk reduction to hold both within a portfolio.

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