Iran selloff wipes out dispersion profits
Popular indexes down 5% in March, despite low realised correlation; some short bets see gains
Equity dispersion trades have been rattled by the Middle East conflict.
Correlated stock moves since February 28, when the US-Israeli strikes against Iran began, have caused most versions of the strategy – which saw big inflows from real money investors at the start of the year – to give up year-to-date gains and move into negative territory.
Traders worry a prolonged conflict could doom the
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