Collapse of correlation fails to stem zeal for dispersion
New analysis suggests immensely popular relative value strategy may have more upside
Toppish entry levels have done little to temper investors’ enthusiasm for equity dispersion strategies, which bet on swings in single stocks outpacing index volatility.
“We quoted more dispersion in the last week than the month before,” says Steve Nawrocki, head of equities trading for the Americas at BNP Paribas.
Equity dispersion has emerged as the volatility trade of choice among hedge funds and
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