Interpret the following statements (from the financial news): l If your assets in your portfolio move in
Question:
Interpret the following statements (from the financial news):
l If your assets in your portfolio move in tandem, then you will either be all right or all wrong.
l Correlation has become more important over the last couple of decades because the world has become more linked.
l Changes in correlation reflect how often you buy bonds, when you shun stocks, and how often you sell bonds to buy stocks.
l Investors choose assets that are negatively correlated in order to hedge risk.
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Kirti Kaushal
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Related Book For 
Understanding Investments Theories And Strategies
ISBN: 9780367461904
2nd Edition
Authors: Nikiforos T. Laopodis
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