Are Elevated Correlation the New Normal? By Sam Stovall S&P Equity Research
Sectors within the S&P 500 have exhibited a similar trend. Summary Points The correlations of many assets with domestic stocks have increased during the past 30 years. The availability of mutual funds and Exchange Traded Funds has contributed to this trend. Correlations of the S&P 500 with all 10 of its component sectors are at or near their highest points in 20 years. Over the past 30 years, the variability …