COVID anomaly in the correlation analysis of S&P 500 market states.

Martínez-Ramos, M Mijaíl; Vyas, Manan; Majari, Parisa; Seligman, Thomas H · PLoS One · 2024

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Abstract

Analyzing market states of the S&P 500 components on a time horizon January 3, 2006 to August 10, 2023, we found the appearance of a new market state not previously seen and we shall discuss its possible implications as an isolated state or as a beginning of a new general market condition. We study this in terms of the Pearson correlation matrix and relative correlation with respect to the S&P 500 index. In both cases the anomaly shows strongly.