The above - linked research has shown that, in a market correction, nearly every single liquid
investment moves in the same direction: downward.
Not exact matches
With that keen
direction in mind, the
investment becomes more
moving and the timely and topical parallels to marriage equality still embattled today become more organic and poignant at the
same time.
Bonds are generally less volatile than stocks and often don't
move in the
same direction as stocks, so they can be a good diversifier
in an
investment portfolio.
Interest rate risk may be lower than some bonds as the
investment's pricing tends to
move in the
same direction as stocks.
If one is looking to reduce stock market risk by combining assets that don't necessarily
move in the
same direction, the
investments must have little - to - no relationship.
A correlation of 1.0 indicates the
investments have historically
moved in the
same direction; a correlation of -1.0 means the
investments have historically
moved in opposite
directions; and a correlation of 0 indicates no historical relationship
in the movement of the
investments.
This is the theory: If 95 % of investors believe an
investment asset is
moving in a certain
direction, then they have already acted and there is little or no catalyst to propel the asset
in the
same direction.
A perfect correlation (1.00) would mean that both
investments always
move in the
same direction with the
same magnitude.
In order to diversify your portfolio, you want to try and find investments that don't always move in the same direction at the same tim
In order to diversify your portfolio, you want to try and find
investments that don't always
move in the same direction at the same tim
in the
same direction at the
same time.