Asset allocations

Asset allocators, beware: some correlations are turning positive

some correlations are turning positive

In certain sectors, the correlations between equities and bonds are turning positive (again). That is a serious challenge for asset allocators.There is usually a negative correlation between the performance of stocks and bonds. But since the pandemic, a number of sectors, such as tech, consumer and communications, have seen a positive correlation, a recent study by Fidelity International found.

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