May 17, 2018
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- Income Report Card
May 14, 2018
May 11, 2018
- All Posts by Nathan J. Rowader
Short-term correlations have risen, likely indicating a strengthening macro environment for rates and inflation. We believe this is made most evident in the positive correlation of foreign currencies.
The correlation figure measures how each asset return moves in relationship to the broader basket of asset returns listed on the X axis. When correlations are high or rising, it may indicate that economic movements and sentiment are driving the majority of returns, which could potentially make security selection challenging.