The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about the surprising positive correlation between bonds and stocks. Now, really quickly before we even get started with this, if I were to tell you to build just a very simple diversified portfolio, what intuitively would be some of the things that you would add? You don’t have to reply out loud right now unless you want to and you can talk to me through the radio or the headphones, whatever you’re listening to. But many people would immediately say stocks and bonds and in fact, this is probably Wall Street regular lingo 101, that you should have a diversified portfolio of stocks and bonds. And while this is true to a certain extent, what we’ve actually found in our research and many other people have found this, but we’ve just confirmed this as well with our research, is that stocks and bonds actually have a surprisingly high correlation to one another and a correlation that would sugg