4 ms·
In my very uninformed opinion the financial system is a big correlation machine. People buy stuff that is mechanically and logically unrelated to their other as
by Paradigma11 4y ago
In my very uninformed opinion the financial system is a big correlation machine. People buy stuff that is mechanically and logically unrelated to their other assets. Everybody does this, but when the crash hits they have to sell those assets too, to satisfy margin calls or other obligations.
Voila, instant correlation.