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Helix  Terminal ← Exhibition
Mean correlation ── · one factor's share ╌ · drag to travel
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One factor explains
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The sector skeleton
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Mantegna 1999 · Onnela et al. 2003 · March 2020

—In a crash,
everything moves together.

Fifty-five S&P 500 stocks, joined by the shortest tree through their correlations. In calm markets it grows sector by sector. In March 2020 one factor explained three-quarters of everything, and the tree shrank by nearly half. What it did not do is forget its sectors.

Press ⚡ March 2020 and watch the tree contract · then Shuffle sectors to see what chance looks like
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