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Correlation Gauge for S&P 500 Falls at Fastest Rate Ever

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With October’s tempest behind them, investors are speculating stocks will break out of lockstep moves and start reacting to individual influences such as earnings and takeovers.

The Chicago Board Options Exchange’s S&P 500 Implied Correlation Index has dropped a record 30 percent in November. The gauge, which uses options to measure expectations about whether Standard & Poor’s 500 Index stocks will move in unison, touched the lowest level since the index was created in January 2012 on Nov. 18.