Category: Quant Insight

Overall, we believe most asset classes have a lower long-term correlation than historical averages and has been relatively unchanged over the past several weeks. Without any changes in trend, it’s hard to draw any meaningful data from this data at this point.

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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