{"id":62691,"date":"2018-03-11T00:01:35","date_gmt":"2018-03-11T05:01:35","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=62691"},"modified":"2018-03-13T01:10:45","modified_gmt":"2018-03-13T05:10:45","slug":"correlation-up-a-beta-not-alpha-world-for-now","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2018\/correlation-up-a-beta-not-alpha-world-for-now.html","title":{"rendered":"Correlation up &#8211; A Beta not Alpha World for Now"},"content":{"rendered":"<p>(Harvest) We follow the dispersion, volatility and correlation indices generated by Standard &#038; Poor&#8217;s which show intra-index stock behavior over time. When the correlation across stocks within in an index is high, there is a clear sign that the market is facing a macro shock. Performance should be biased toward beta risks. Fund returns will be driven by their beta exposure and timing skill not by their stock-picking skill. When correlation is low across stocks within an index, we can say it is a stock picker&#8217;s environment because skill-based traders will be rewarded for exploiting differentiation across firms. This lower correlation will generate more dispersion in returns if there is additional volatility.<\/p>\n<p><a href=\"https:\/\/www.hvst.com\/posts\/correlation-up-a-beta-not-alpha-world-for-now-XWaTJ8jd\">To read this article:<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Harvest) We follow the dispersion, volatility and correlation indices generated by Standard &#038; Poor&#8217;s which show intra-index stock behavior over time. When the correlation across stocks within in an index is high, there is a clear sign that the market [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-62691","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=62691"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62691\/revisions"}],"predecessor-version":[{"id":62692,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/62691\/revisions\/62692"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=62691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=62691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=62691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}