The hottest Correlations Substack posts right now

And their main takeaways
Category
Top Crypto Topics
Klement on Investing 4 implied HN points 05 Feb 25
  1. Index funds can make the stock market riskier by increasing how closely stocks move together. When more money goes into these funds, stocks often react in similar ways.
  2. The ownership of stocks by index trackers affects their risk. More index fund ownership leads to higher stock price drops during market downturns, meaning more losses for those stocks.
  3. As index funds grow, the overall market's volatility also increases, making big market drops worse than they used to be. The concern is that everyone could suffer larger losses during a major market downturn.
Reminiscences Of A Young & Naïve Financier 19 implied HN points 28 Feb 23
  1. Correlations vary widely over different time intervals, affecting asset allocation decisions.
  2. Shorter time intervals show smaller correlations, while longer intervals have greater variability.
  3. Conservative estimates of correlations using consistent shorter intervals may be more reliable for projecting into the future.
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Coin Metrics' State of the Network 0 implied HN points 31 May 23
  1. The digital asset market has evolved significantly since Bitcoin's inception, with emerging sectors like blockchain infrastructure, on-chain derivatives, DeFi, and NFTs.
  2. Sector correlations, like BTC and ETH, can provide insights into the relationships among different sectors within the digital asset market.
  3. Market volatility varies across sectors, with assets in the Decentralized Finance sector experiencing the highest average volatility in 2023.