Collapse of correlation fails to stem zeal for dispersion

New analysis suggests immensely popular relative value strategy may have more upside

Dispersion success

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 asset managers, with exposures growing five-fold in the past four years to vega notional of up to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here