Correlation
Correlation measures, on a scale from −1 to +1, how closely two return series move together.
Correlations between factors are not constant; they often rise in stressed markets, which reduces diversification when it is most needed.
Correlation measures, on a scale from −1 to +1, how closely two return series move together.
Correlations between factors are not constant; they often rise in stressed markets, which reduces diversification when it is most needed.