Variance Is Authored at the Index Level

1. Stock selection is downstream of secondary-market mark-to-market dynamics.

2. Drawdowns arrive primarily through benchmark correlation and beta.

3. Execution timing is materially under-theorized relative to risk models.

4. Continuous mark-to-market measurement amplifies variance effects relative to fundamental correctness.

5. Most risk frameworks manage variance exposure rather than conditioning engagement on variance states.

6. Index-level variance defines regime; single-name outcomes are downstream expressions.