Research preview

Tech stocks have widened their lead over the broader S&P 500 to a margin never seen before. For quantitative traders, this divergence is both a signal and a test of risk‑adjusted performance metrics that underpin systematic allocation decisions. The Numbers Behind the Surge The recent data shows technology equities delivering returns that dwarf those of non‑tech constituents of the index. When a sector consistently generates higher excess returns, the first question is whether the additional upside justifies the extra risk. A simple Sharpe ratio calculation can illuminate this trade‑off. Consider a hypothetical tech portfolio that yields a 10 % annual return with a volatility of 5 %....