In an article published in Financial Investigator on 31 March, 2026, Evan Clark, Senior Private Market Analyst at EDHEC Infrastructure & Private Assets Research Institute (EIPA), discusses how high-frequency private equity data that provides insight into short-term market risk can also inform longer-term return and correlation assumptions:
Liquidity differences in public and private markets can lead to different return dynamics over shorter horizons. As the horizon extends, correlations among listed and private equities increase, reflecting the fact that they are both equity positions and thus share similar exposure. Marrying this with the longer-term investment horizon of private equity participants, it stands to reason that using longer-term correlation relationships is more suitable for asset allocation decisions.
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