Falling correlations could give hedge funds bumper returns

A fall in asset-to-asset correlations could mean a good year for many hedge fund strategies, even though volatility is expected to remain relatively low, according to research from Axioma

Lower asset-to-asset correlations good news for hedge funds

Despite negative factors such as US sequestration, the Cyprus euro crisis and continued weak job growth in Europe and the US, risk has fallen globally. Markets are generally strong and predicted risk largely continued the decline that started a year ago, according to Axioma's first quarter 2013 quarterly risk review.

A decline in correlations between individual assets within markets as well as between markets globally was also reported by Axioma, a risk management solutions provider to the

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