Oksana Koneva

Michael Kantro: Correlation between cap and equal-weighted S&P 500 falls to 37%

Michael Kantro: Correlation between cap and equal-weighted S&P 500 falls to 37%
S&P 500 cap and equal weight correlation drops

The correlation between the capitalization-weighted and equal-weighted S&P 500 has dropped to 37%.

Michael Kantro shared this observation and posed the question of whether to focus on the stock market as a whole or on individual stocks.

Kantro previously reported that the S&P 500 Macro Select stock index is up about 30% year to date, outpacing both the capitalization-weighted and equal-weighted benchmarks. He also noted that corporate margins are surging due to cyclical and secular forces, with gains extending beyond large-cap companies. These observations come as attention turns to differing market signals from alternative index weighting.

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