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Average correlation across stocks, bonds and oil is reportedly at a 30-plus-year high
A user puts the average correlation across the three at 0.56 and questions the bond hedge, saying oil gains now coincide with losses in both stocks and bonds.
TLDR
A user says stocks, bonds and oil have become “one trade,” with an average correlation of 0.56 across the three — the highest in more than 30 years. They say oil gains coincide with falling stocks and bonds, and wonder whether a Hormuz deal could lift all three.
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