Insights


AQE Commentary: Volatility Among Historically Divergent Sectors in Now Converging

Volatility Among Historically Divergent Sectors is Now Converging. A Comparison of Utilities and Insurers Illustrates What This Means for Portfolio Construction.

  • Utility stocks are becoming more volatile and, from a valuation perspective, less attractive. Meanwhile, insurance stocks are currently expressing the risk and return attributes of a classically defensive exposure.
  • At the same time, our proprietary macro-risk model adds important nuance to our risk and return assessments and, ultimately, to our defensiveportfolio positioning.

Olivia Engel
CIO, Active Quantitative Equity

 

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