By Charles Rotblut (Guest Post)
Stock price movements have become highly correlated, with correlations reaching levels not seen since 2008. This is not surprising given historical data and should end up being a temporary occurrence. Correlation, in financial terms, is a mathematical model that indicates how closely the returns of various assets match each other. Correlations can range from +1.0 (assets have returns that move in lockstep together) to -1.0, (assets have mirror opposite returns). Correlations may be expressed in decimal format (e.g., 0.72) or percentage format (72%). Over…
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