Category: Quant Insight

Correlations remain largely unchanged this week, likely due to the decline in rates. We think the next move in rates will give a better indication as to how the market will arrange itself in response.

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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