If on the exam, the question ask us for True/False Somebody say “I have noticed that financial market’s correlation increase during time of high volatitliy”. True/False.
FALSE, Statistical abberation
I think it is actually true. They ARE more correlated, but the reason is not what was originally thought.
^That is my confusion too. We all know the underlying assumption is not accruate, that is just the statstical property of correlation. However, when presented with such statment, I don’t know to respond to it.
correlation does increase, but it doesnt represent an increase in true correlations
whatever that means 
^Yeah, whatever that mean???
True.