The Cboe S&P 500 Dispersion Index (DSPX) debuted over a year ago, but the investment concept of dispersion still remains unfamiliar or unclear to many investors. In simple terms, dispersion refers to the range or spread of individual stock returns around the index’s average return. Each day, indices like the S&P 500 calculate a market-cap-weighted average return based on the performance of the stocks within the index. However, this average does not reveal the variation in returns between individual stocks, which is where the concept of dispersion becomes relevant. Dispersion measures this vari…