The S&P Europe 350 index correlation reached 0.60, a level not seen since the depth of the Euro crisis and further confirmation of an elevated risk environment on the continent.
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October was a volatile, albeit ultimately positive, month for global equities. S&P 500 correlation increased along with S&P 500 dispersion; the former to above-average levels and the latter back up to average.
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With the ECB, BoJ and Fed setting the tone in developed markets, those hoping to exploit a more traditional ability to select among stocks, sectors or countries may note the high dispersion and below-average correlations prevailing in emerging markets.