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This study is to analyze the correlation between Liv-ex indexes and stock indexes. We select four kinds of wine Indexes and five major national stock indexes for the study, including four kinds of wine Indexes from the London International Vintners Exchange, Taiwan Weighted Index, Dow Jones Industrial Average, the British FTSE 100 Index, Germany''s DAX and France''s CAC index. The period of the sample is from January 2004 to March 2013. Besides, the data frequency is monthly data. Using the methods of the correlation coefficients to test the relations between Liv-ex indexes and five major national stock indexes. Try to disscuss whether Liv-ex indexes can be used as leading indicators of stock price indexes.
From results of the study, before the financial tsunami, the correlation coefficients from four kinds of Liv-ex indexes and five major national stock indexes are substantially higher. Besides, the long period before the financial tsunami, Liv-ex indexs can be used as one of the business indicators. But in recent years, a large number of Chinese investors go into the wine markets, Liv-ex indexes have been gradually distorted, and have not been important leading indicators any more.
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