
All the Stocks Are the Same Now - feross
https://www.bloomberg.com/opinion/articles/2020-05-27/all-the-stocks-are-the-same-now
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smabie
The correlation between a stock and the S&P 500 does not accurately capture
the total relationship between the two. Some companies are going to have
higher exposure to the market (called beta) than others. So even if all stocks
are rising and falling in lockstep, the magnitude of movements are going to be
different for each individual stock. And like anything else in finance, savvy
investors can exploit this to manage risk and outperform, even long-only funds
during coronavirus.

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alpineidyll3
This is a natural consequence of pairs trading. Matt's columns are usually
great, but his analysis of trading strategy usually comes from qualitative
rather than quantitative perspective. He does great for a classics major.

Of course the headline is totally overblown. To say TSLA is the same as GE is
ludicrous.

