Not exact matches
Diversification is definitely key not just
between cryptocurrencies but all different types of
asset classes.
As such, although there is no necessary correlation or non-correlation
between assets classes, managed futures as an
asset class offer a potential
diversification benefit over long - term periods, particularly during periods of significant market turbulence.
We went from thinking about just diversifying
between stocks and bonds to now diversifying across
asset classes, meaning large cap and small cap, value and growth, made the world much more complex, but opportunities for advisors like you, Joe, to help your clients by adding value through superior design, better
diversification of portfolios.
But good
diversification is only one layer of protection and as investors have learned, it can have an inherent weakness in bear markets where correlation
between asset classes can go to one at light speed.
This has become harder over the years as the correlation
between asset classes has increased in what has become a risk - on, risk - off world, reducing some of the benefits of
diversification.
Diversification can mean
between asset classes, or
between industry sectors, or
between countries.
Diversification is a two - level strategy:
between asset classes, such as property, bonds or stocks, and within
asset classes.
Modern Portfolio Theory postulates that the key to achieving an efficient portfolio is
diversification between non-correlated (or negatively - correlated)
assets classes — broad categories of investments that share few similarities in their performance.
Yet the risk reduction provided by
diversification is strictly theoretical: It depends on historical relationships
between asset classes continuing into the future, and there's no guarantee that will occur.
Asset allocation is the art and science of spreading money around between different types of investment asset classes to stabilize and increase returns and lower volatility and risk through diversifica
Asset allocation is the art and science of spreading money around
between different types of investment
asset classes to stabilize and increase returns and lower volatility and risk through diversifica
asset classes to stabilize and increase returns and lower volatility and risk through
diversification.
3)
Asset Allocation: The art and science of spreading money around between different types of investment asset classes to help increase and stabilize returns, while lower risks and volatility through diversifica
Asset Allocation: The art and science of spreading money around
between different types of investment
asset classes to help increase and stabilize returns, while lower risks and volatility through diversifica
asset classes to help increase and stabilize returns, while lower risks and volatility through
diversification.
The first type is
diversification between different
asset classes.