Understanding Correlation And Diversification
Why It Pays To Invest In Uncorrelated Assets
Published in
8 min readJan 9, 2020
Correlation is a fundamental concept in both finance and statistics. In plain English, correlation tells us the likelihood that two variables move together. A high correlation means that when one variable goes up, the other is very likely to go up as well. The stock returns of similar companies, like Coke and…
