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sbm
DescriptionThe correlation parameter between delta sensitivities within the same bucket, under the ‘Medium correlations’ scenario
Variationshigh-low
Hierarchies required in the viewCommodity Delta Double Sums, Commodity Buckets
Reference[MAR21.83]
NotationρklMediumCorr\rho_{kl}^{MediumCorr}
For each bucket, the factors ρklcty\rho_{kl}^{cty}, ρkltenor\rho_{kl}^{tenor} and ρklbasis\rho_{kl}^{basis} and looked up based on cases cty, tenor, basis - represented by the levels in the hierarchy Commodity Delta Double Sums.