## Figure 3.6. Single Factor versus Principal Component Analysis, 1995–2015 (Standard deviations)

## Source details

**Canonical URL:** [Figure 3.6. Single Factor versus Principal Component Analysis, 1995–2015 (Standard deviations)](https://www.imf.org/-/media/files/publications/gfsr/2017/april/figure3-6.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2017/april/figure3-6.pdf.md)
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### Chart axes and scale
- Left axis tick labels: 0, 10, 20, 30, 40, 50, 60, 70
- Right axis tick labels: –2, –1, 0, 1, 2, 3, 4, 5, 6
- Time axis: Jan. 1995; Mar. 96; May 97; Jul. 98; Sep. 99; Nov. 2000; Jan. 02; Mar. 03; May 04; Jul. 05; Sep. 06; Nov. 07; Jan. 09; Mar. 10; May 11; Jul. 12; Sep. 13; Nov. 14; Jan. 16
- Time span covered: 1995–2015

### Data series shown
- Global financial conditions (factor model)
- Global financial conditions (PCA)
- U.S. financial conditions
- VIX (right scale)

### Notes on interpretation
- Higher values indicate tighter-than-average financial conditions.
- FCI = financial conditions index; PCA = principal component analysis; VIX = Chicago Board Options Exchange Volatility Index.

### Key finding highlighted in figure
- Evidence suggests that global financial conditions move in lockstep with the U.S. financial conditions index and the VIX.

*Sources: Haver Analytics; and IMF staff estimates.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/figure3-6.pdf_