Elevated correlation

As Stock and Sector Correlation Hits Fresh 20 Year Highs, Here is who is Benefiting. Submitted by Tyler Durden

There was a time when being short was a bad idea. Not anymore. As David Kostin’ summarizes in his latest weekly chart packet, the level of 3 month S&P and sector correlation is now at a 20 year high, an environment which never leads to good outcomes for long-only whales, and which has led to sizable outperformance for hedge funds due to their recent loading up on short positions. To …

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