Recent research suggests market correlations remain consistent whether measured in daily intervals or five-minute increments. This finding holds significant implications for short-term traders looking to capitalize on temporary divergences between typically correlated assets.

The study examined popular ETFs including SPY, QQQ, IWM, TLT, gold, USO, FXE, and ITA (aerospace/defense sector) over a two-month period. Results showed minimal differences between daily and five-minute correlation patterns, suggesting when correlations exist, they persist across time frames.

This validates the trading strategy of identifying when correlated assets temporarily diverge, like when Apple drops while SPY rises and positioning for their eventual realignment. The research indicates such correlation-based opportunities can be effectively traded in liquid markets across various timeframes.