With two different risky assets, an investor can minimize total portfolio volatility through the combination of investments with low to negative correlation. In a higher yield environment, 60/40 can ...
Correlation coefficients range from -1 to +1, indicating the strength of relationships between variables. Investors use correlation coefficients for portfolio diversification to reduce risk.
Bitcoin BTC $87,479.75 is once again behaving differently from the traditional risk asset complex, and the latest divergence may be sending an important signal. Negative correlation between bitcoin ...