Trading Post-Pandemic Shifts in Market Correlations
The extreme shifts in market correlations observed during the heights of the COVID-19 pandemic have now mostly “normalized,” and in some cases, even dropped below pre-pandemic levels.
Trading Post-Pandemic Shifts in Market Correlations
Correlations to Reduce Risk in Pairs Trades
Strong correlations don’t guarantee profitable outcomes in the market, but they do increase the likelihood of success—especially when it comes to pairs trades.