Adam127 Johnson#45

Ver traducción

How do cross-asset correlations evolve during crises?

In normal times, correlations follow expected patterns (stocks up = USD down). In crises, correlations converge: everything sells off into USD. Institutions model stress correlations with scenario analysis. Retail traders often get confused when traditional relationships break. Benefits: awareness of shifting regimes prevents surprise. Risks: treating correlations as permanent leads to losses. Crises prove forex is dynamic—correlations bend under stress, demanding flexible thinking.