Sector dispersion

How far apart the ten sector funds' moves are today.

Formula

Dispersion = standard deviation of the ten sector funds' % changes today

How to read it

Low dispersion — sectors moving together — means one macro story is driving everything. High dispersion means rotation: money moving between sectors rather than into or out of stocks.

How to use it

On a flat index day, high dispersion says something is happening underneath; the sector board shows where.

Limitations

Ten numbers on one day, so one sector's outsized move dominates it. Real estate is not one of the ten.

In Kereon

Market · Pulse. The population standard deviation of the sectors ranked on the rotation board, in percentage points; needs three or more of them.

Also called: dispersion.

Related terms

The whole glossary · Investing tools