The average 50-day correlation of S&P 500 members to the index has risen to the highest levels since the market bottomed in 1987.
The so-called correlation coefficient -- in which a reading of 1 means stocks move in perfect tandem with the index -- was 0.84 on Tuesday, measured as a 50-day average.
There's a saying in financial circles that during a crisis, correlations go to 1, as investors dump all sorts of assets.
No comments:
Post a Comment