Correlation between US tech stocks and South Korean stock market rises to highest level since 2021

Odaily Planet Daily reported that according to data provided by asset management firm Rayliant, the 60-day correlation between South Korea's KOSPI and the Nasdaq 100 has recently climbed to around 0.50, reaching its highest level since 2021. Market participants warn that this closer relationship also brings risks, as the increase in correlation erodes the diversification and risk-hedging effects that investors have traditionally sought by holding both US and South Korean stocks. (Caixin)