Correlation between Baltic dry index and Shanghai stock exchange composite index

The variations of Baltic dry index(BDI) and Shanghai stock exchange composite index(SSE composite index) over the last three years reflect the historical features of the world economy in the context of financial crisis.To test the correlation between SSE composite index and BDI,taking the weekly average of SSE composite index and BDI from 2007 to 2009 as empirical sample data,the curve graph and the scattered chart were analyzed,then,the statistical analysis was done.Result indicates that SSE composite index and BDI show the positive correlation.SSE composite index accurately reveals the economy trends of China and the world,which is more referable than BDI.The eruption of the world financial crisis proves that Shanghai stock exchange composite index can be taken as a direction indicator to explain the essence of economy of both China and the world shipping markets.