Correlation | August 23, 2017

Category: Quantitative Insights

Correlations dropped among most asset classes aligning with the move lower in most inflation-sensitive asset classes. We think this is likely a pause to the reflation trade that dominated over the past few months.

The correlation figure measures how each asset return moves in relationship to the broader basket of asset returns listed on the X axis. When correlation ns 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.

See the data