Asset Correlation

What is Asset Correlation?

Asset correlation is how close two different types of investments react to each other. If they are closely correlated they will rise and fall almost in tandem. If they are not, or negatively, correlated, one will rise while the other falls and vice versa. If you want to create a diversified portfolio you need to understand how one investment interacts with another.

Learn the advantages, disadvantages, risks, questions to ask before investing, and much more...

For the rest of the article and full site access, please subscribe now.