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Alpha Exchange — Correlation, Crowding and Convexity
Not scored yet15m·2024-06-20·Money

Correlation, Crowding and Convexity

Alpha Exchange · 165

There’s been some decent ink spilled recently on the “dispersion trade” which has profited from the epically low level of realized correlation among stocks. If winning trades attract capital and erode the margin of safety in the process, is this exposure crowded and vulnerable to an unwind? In this short pod, I lay…

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