Table 2.14: Cross-correlations. The cross-correlations between the LIFFE and CSCE continuation cocoa series, and the Pound-Dollar exchange rate for the periods 1983:1-1987:12, 1988:1-1992:12 and 1993:1-1997:6.

83:1-97:6       83:1-87:12      
Corr LIFFE CSCE BPDo Corr LIFFE CSCE BPDo
LIFFE 1     LIFFE 1    
CSCE 0.98 1   CSCE 0.87 1  
BPDO 0.66 0.51 1 BPDO 0.88 0.58 1
88:1-92:12       93:1-97:6      
Corr LIFFE CSCE BPDo Corr LIFFE CSCE BPDo
LIFFE 1     LIFFE 1    
CSCE 0.97 1   CSCE 0.93 1  
BPDO 0.08 -0.13 1 BPDO 0.26 0.16 1



Table 2.15: Excess returns when LIFFE in Dollars and CSCE in Pounds. Percentage of trading rules with a strictly positive mean excess return in the case of 0.1% transaction costs, when applied to the CSCE continuation series expressed in Pounds and the LIFFE continuation series expressed in Dollars for the full sample 1983:1-1997:6 and the three subperiods 1983:1-1987:12, 1988:1-1992:12 and 1993:1-1997:6.

  CSCE in Pounds   LIFFE in Dollars  
Period MA TRB Filter All MA TRB Filter All
1 70.03 44.66 45.77 57.93 16.61 33.32 24.54 23.71
2 34.53 27.95 34.83 32.11 77.85 55.59 51.91 66.69
3 9.70 8.38 24.05 10.84 26.75 23.78 33.50 26.40
Full 21.72 13.60 27.20 19.30 34.67 33.07 32.67 33.85

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