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Alpha Exchange — Low Correlation is the Defining Risk in Markets
Buzzing ratingBUZZING· 72%25m·2025-10-01·Money

Low Correlation is the Defining Risk in Markets

Alpha Exchange · 227

They say that diversification is the only “free lunch” in markets. Scatter your bets around and you’ll realize a reduction in volatility that helps you manage risk. That’s been happening at an epic scale in US equity markets: the 1m correlation among stocks in the S&P 500 is (to quote Dean Wormer from Animal House)…

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