The correlation between different U.S. stocks has dropped to a six-year low, making this more of a stock picker's market.

The Russell 1000 index of large cap stocks had a weighted average correlation of 0.3 to the index itself as of July 31, the lowest month-end level since 2007 and down from 0.57 a year earlier, according to Deutsche Bank, The Wall Street Journal reports.

The scale goes from 0 (completely uncorrelated) to 1 (perfectly correlated).

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The situation has changed from the past few years, when the market was in what investors called risk on-risk off mode. That meant investors were either buying all risk assets during a certain period or none.

"Over the past three years, all anyone has been talking about is risk on-risk off," Tim Holland, a portfolio manager at Tamro Capital Partners, tells The Journal.

For the average investor, this shift away from herdlike action is good news.

"When everything moves in one direction or the other it weighs on sentiment," Holland explains. "It's not fun to go through those periods where everything is painted with one brush."

So now investors may have to be more discerning with individual stocks to find winners.

"In a market where earnings have driven the first part and valuation has driven the second part of the rally, people are looking for other ways to create value," Scott Glasser, co-chief investment officer at ClearBridge Investments, tells The Journal.

So it's all about stock picking currently, experts say.

"We're at the part of the cycle where unlocking shareholder value is going to get more case-by-case," says Matt Peron, head of Northern Trust's active-equity group, according to The Journal.

"Good old-fashioned stock picking is coming back in vogue," notes Stephen Penwell, director of North American equity research at Morgan Stanley, according to Bloomberg. "Clients are beginning to make more bets and bigger bets."

Mike Murphy, managing partner of Rosecliff Capital hedge fund, tells CNBC, "This is 100 percent a stock-picking market. You can't just throw a bunch of money in any one sector and just let it go for you."

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