blog

Latest from the Quantamize Blog

Should traders and investors be trading individual tech stocks or simply trade QQQ and XLK?

Oct 02, 2018

  • Below are two charts illustrating realized 1-month pairwise correlations and 1-month average dispersion for stocks in the Quantamize All-Cap US Tech universe over the last 3 years.  
  • Correlations of tech stocks in our Quantamize All-Cap US Tech universe are currently near historical lows which supports “stock picking”.  
  • 1-month average dispersion of tech stocks in our Quantamize All-Cap US Tech universe is extremely high at 18.33% as of October 1st, 2018, indicating there is significant diversity among the returns of tech stocks in our overall tech universe. 
  • Low levels of correlations when paired with high levels of dispersion among stocks in our US tech universe should encourage investors to trade individual tech stocks in our All-Cap US Tech universe that are "Top Buys", compared to investing in passive tech indices. 

       Source: Capital IQ