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Dispersion And Correlation Are Screaming Overbought, Downside Hedging Is Cheap

Tyler Durden
Jun 3, 2026 at 18:20
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Dispersion And Correlation Are Screaming Overbought, Downside Hedging Is Cheap

Dispersion And Correlation Are Screaming Overbought, Downside Hedging Is Cheap Submitted by SpotGamma CBOE’s Dispersion Index (DSPX) is at levels only seen during Covid and the April ’25 tariff crash, while Correlation (COR1M) is near all-time lows. This divergence signals extreme positioning risk driven by the AI stock chase,...

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