Dispersion trade (short correlation) Loading... : Investor Sentiment and Bull/Bear Views
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Sep 16
Sep 16
Short correlation trade is crowded, fragile.
The dispersion/short-correlation trade has become a crowded carry trade, heavily packaged in bank QIS products. It has worked because realized correlation is at never-before-seen lows, but new trades are being put on at levels with no margin of safety. A realized correlation spike, similar to a VIX carry unwind, would hit short-correlation sellers hard, so the trade is unattractive at current levels.
HIGH
About Dispersion trade (short correlation) Investor Commentary
Across the available history and selected sources, Buzzberg tracks Dispersion trade (short correlation) across 1 sources: 0 bullish vs 0 bearish calls from 1 authors. Historical directional balance: 0% = 100 × (bullish − bearish) / all deduplicated idea records, including other directions. This is neither a probability of a price rise nor the share of bullish authors. 1 total trade idea tracked. Past 7 days, before deduplication: 1 other directions. Latest voices: Dean Curnutt.