, 2004) Thus at a point in time when the market return is increasing we might expect to find the correlation between any two … stocks to be, on average, lower than the correlation between those same two stocks when the market return is negative …"Avoid downturn vulnerability by managing correlation dependency Asymmetric Dependence in Finance examines the risks …

-- References -- Further Reading -- Chapter 4: Misspecification in an Asymmetrically Dependent World: Implications for Volatility … -- 5.1 Introduction -- 5.2 Asymmetric Dependence in Implied Equity Correlation: The Implied Correlation Skew -- 5.3 The … Effect of Correlation Skew on Portfolio Choice -- 5.3.1 The Optimal Portfolio Incorporating Stochastic Correlation -- 5 …