Category: Quant Insight

Correlations remain low in foreign developed stocks and energy commodities. We believe investors may look for active bets in this part of the market, given improving momentum and volatility.

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.

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