DEFINITION of 'Recoupling'
When returns on asset classes revert back to their historical or traditional patterns of correlation. This is in contrast to decoupling, which occurs when asset classes break away from their traditional correlations. Recoupling occurs after a period in which the asset classes have been generating a return that shows little correlation.
BREAKING DOWN 'Recoupling'
Recoupling and decoupling revolve around the idea that there is a correlation between asset classes based on fundamental factors, like trade relationships when referring to economies. For a true decoupling to occur, there needs to be the removal or weakening of the fundamentals behind the relationship.

Contagion
The likelihood that significant economic changes in one country ... 
Correlation Coefficient
A measure that determines the degree to which two variable's ... 
Decoupling
The occurrence of returns on asset classes diverging from their ... 
Correlation
In the world of finance, a statistical measure of how two securities ... 
Asset
1. A resource with economic value that an individual, corporation ... 
Cost Accounting
A type of accounting process that aims to capture a company's ...

Forex Education
Making Sense Of The EUR/CHF Relationship
The strong correlation between EUR and CHF currency pairs is undeniable. Find out what it means for forex traders. 
Fundamental Analysis
Explaining the Central Limit Theorem
Central limit theorem is a fundamental concept in probability theory. 
Fundamental Analysis
Examining Mexico's TrillionDollar GDP
Examining the gross domestic product growth and composition of Mexico, the second largest economy in Latin America 
Fundamental Analysis
What Causes Inflation in the United States
Inflation is the main catalyst behind U.S monetary policy. But what causes this phenomenon of sustained rising prices? Read on to find out. 
Fundamental Analysis
Is India the Next Emerging Markets Superstar?
With a shift towards manufacturing and services, India could be the next emerging market superstar. Here, we provide a detailed breakdown of its GDP. 
Term
Estimating with Subjective Probability
Subjective probability is someone’s estimation that an event will occur. 
Investing Basics
Understanding the ModiglianiMiller Theorem
The ModiglianiMiller (M&M) theorem is used in financial and economic studies to analyze the value of a firm, such as a business or a corporation. 
Economics
Explaining Kurtosis
Kurtosis describes the distribution of data around an average. 
Personal Finance
Simple Interest Loans: Do They Exist?
Yes, they do. Here is what they are – and how to use them to your advantage. 
Options & Futures
An Introduction To Value at Risk (VAR)
Volatility is not the only way to measure risk. Learn about the "new science of risk management".

What is the correlation between American stock prices and the value of the U.S. dollar?
The correlation between any two variables (or sets of variables) summarizes a relationship, whether or not there is any realworld ... Read Full Answer >> 
What is the utility function and how is it calculated?
In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >> 
How can I use a regression to see the correlation between prices and interest rates?
In statistics, regression analysis is a widely used technique to uncover relationships among variables and determine whether ... Read Full Answer >> 
How do I calculate a modified duration using Matlab?
The modified duration gauges the sensitivity of the fixed income securities to changes in interest rates. To calculate the ... Read Full Answer >> 
How do I calculate the rule of 72 using Matlab?
In finance, the rule of 72 is a useful shortcut to assess how long it takes an investment to double given its annual growth ... Read Full Answer >> 
How do I calculate the standard error using Matlab?
In statistics, the standard error is the standard deviation of the sampling statistical measure, usually the sample mean. ... Read Full Answer >>