How to Quantify the Influence of Correlations on Investment Diversification thumbnail
Pause
Mute
Subtitles
Playback speed
0.25
0.5
0.75
1
1.25
1.5
1.75
2
Full screen

How to Quantify the Influence of Correlations on Investment Diversification

Published on Jul 10, 20092579 Views

When assets are correlated, benefits of investment diversification are reduced. To measure the influence of correlations on investment performance, a new quantity - the effective portfolio size - is p