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Correlation | May 17, 2017

Posted on May 17, 2017

Our Observations: Correlations for stocks declined almost across the board, which improved the situation for active stock pickers. However, nearly every other asset saw increases in their correlation, especially those with a high degree of sensitivity toward global rates. We think this could indicate a resurgence in the rate and inflation driven market that has […]

Correlation | May 10, 2017

Posted on May 10, 2017

Our Observations: Nearly every asset class had short-term correlations much closer to long-term correlations. We think this will assist in portfolio construction as the diversification benefits of cross asset portfolios should improve. The best example is the return of negative correlation for bonds, which is historically a strong indication that rate policy may not be the primary […]