📉 Unprecedented in History: S&P 500 Witnesses Record Low Implied Correlation The S&P 500's 3-month implied correlation has just hit ~15.0%, its lowest level ever. This indicates that individual stocks are moving more independently than ever before, reflecting expectations of strong divergence rather than uniform movement. What does this mean? Investors are betting on sector differentiation, rather than fearing a market-wide shock. However, history shows that extremely low correlations often signal unexpected reversals. Is this a sign of a mature market or dangerous complacency? $SPY $SPACEX