The Correlation Matrix for Private Companies

The correlations are where I think a lot of people are missing when they try to model these private markets. When you, the correlations should be lower when you're dealing with private companies. Liquidity conditions are going to move prices so much faster in public markets than private markets. You don't really have a single bank in my private 500, like from a sector perspective. There's no banks in there. The correlations of a software company in Palo Alto versus a biotech company in Boston, almost zero. Call it almost zero. And then the volatility of the S&P 500 is less than the volatility ofthe S&P500. That's spot on the S&p 500. But right

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