Confluences

Multi-Asset Monthly Returns Heatmap Confluences

The Multi-Asset Monthly Returns Heatmap is highly effective for macro and intermarket analysis:

• Intermarket Divergence: Compare the seasonality of inversely correlated assets (e.g., Equities vs. Bonds, or USD vs. Gold) to anticipate macro shifts.
• Sector Rotation: Load the heatmap with various sector ETFs (e.g., XLF, XLK, XLE) to identify historical periods of sector rotation and seasonal strength within specific industries.
• Risk Management: Use the 'Volatility' calculation mode alongside volatility indicators (like the VIX or ATR) to prepare for historically turbulent months in specific asset classes.