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The recent flare‑up between Ethiopia and its northern regions has drawn warnings from regional bodies and neighboring states. For quantitative traders, the episode illustrates how geopolitical risk can quickly alter correlations among assets and reshape portfolio risk profiles. The Geopolitical Spark and Market Sentiment On Sunday, a neighboring country called for Ethiopia to de‑escalate after renewed fighting erupted in its north. International organizations have highlighted the deteriorating security environment, noting that prolonged conflict could disrupt trade routes, commodity flows, and cross‑border investment. Such headlines tend to feed risk‑off sentiment, prompting investors to rotate out of emerging‑market equities and into perceived safe havens such as government bonds or gold....