Sentences with phrase «of uncorrelated assets»

A diversified portfolio, with a mix of uncorrelated assets, tends to smooth out performance.

The reason that cash / bonds are even in the mix is because the portfolio is supposed to be made up of uncorrelated assets — when something goes up, something else should go down (ideally).

Not exact matches

Cowen Special Investments («CSI»), an unregulated merchant banking affiliate of Cowen, is an investor and dealer whose primary function is to assist clients in monetizing illiquid, difficult to value, uncorrelated, non-cusip, financial assets.

Their price movements are uncorrelated to the movements of other asset prices, such as shares and property.

However, within a given portfolio, an investor can maximize return for a given level of risk by diversifying among several uncorrelated asset classes.

If done correctly, with an eye not to achieving political or regulatory objectives but rather to eliminating financial distress costs, these can improve the enterprise value of the borrower; to the extent that the lender participates in the upside (and if the performances of the various equity positons emerging from these swaps are uncorrelated), the lender's net asset position can also improve.

They apply this analysis to definitions of a hedge (safe haven) as an asset that is uncorrelated or negatively correlated with another asset or portfolio on average (in times of market stress or turmoil).

That higher return has come with higher volatility, but by combining several different asset classes that are at least somewhat uncorrelated, or better yet negatively correlated, a higher return per unit of risk is possible.

The liquid - alt pitch is that individuals can access the same types of investments as university endowments and other big institutions, to diversify equity - heavy portfolios, typically with a 10 % to 20 % allocation to liquid alts... The advantage of the [AQR Managed Futures] strategy -LSB-...] is that it is uncorrelated with other asset classes, and «has the most consistently strong performance in equity bear markets.»

Commodities have historically provided investors with a hedge against inflation, a way to capitalize on the growth of emerging economies around the world as well as returns that are uncorrelated to more traditional asset classes, such as stocks and bonds.

We at insuranceandestates.com are advocates of the infinite banking concept ® and we tend to lean towards dividend paying whole life insurance as the primary vehicle for a banking policy, since whole life insurance is an asset, uncorrelated from the stock market.

At the heart of Modern Portfolio Theory is the understanding that in order for a portfolio to be truly diversified, its investments must be allocated across several uncorrelated assets.

Advisers Weigh Cost of a Managed - Futures Cushion Managed - futures funds, which helped cushion some portfolios during the downturn, continue to attract investors seeking uncorrelated assets despite slipping returns.

Anyway, much of my event - driven exposure was ultimately re-invested in Alternative Asset Opportunities (TLI: LN)-- so I simply exchanged a low return / relatively uncorrelated risk for a cheap / high return / totally uncorrelated risk!

A correlation of 1 means two assets move in perfect lockstep, a correlation of -1 means they move in opposite directions, and a figure of zero means they are uncorrelated.

Holding uncorrelated assets, such as stocks and bonds, are one of the most popular methods for reducing portfolio risk since historically stocks and bonds are relatively uncorrelated.

But over the years subsequent to the crisis, we've rebuilt our uncorrelated assets position to an excess of 30 percent.

One of the most important metrics that we look at is the percentage of the portfolio that's in what we call uncorrelated assets.

My view is this: given the wide level of investing in alternative investments, there is no reason why they should outperform, and no reason why they should be uncorrelated with other risk assets, because the same owners own both.

There's a puzzle of sorts in asset allocation, and it falls under the rubric of uncorrelated returns.

The authors do an admirable job of explaining the benefits of diversifying across uncorrelated asset classes, which is a core principle of the Couch Potato strategy.

Let's assume that the goal of diversification is to reduce our risk by taking on new, uncorrelated risks in order to seek equitylike returns at bondlike risk — our industry's holy grail — rather than merely to invest some of our money in low - volatility markets.8 Most would suggest that other risky assets should serve this purpose — if they offer an uncorrelated risk premium (e.g., if that risk premium is related to risk, not to beta).

We at insuranceandestates.com are advocates of the infinite banking concept ® and we tend to lean towards dividend paying whole life insurance as the primary vehicle for a banking policy, since whole life insurance is an asset, uncorrelated from the stock market.

The perception of bitcoin as an uncorrelated asset may be the most important driver in why Wall Street wants to get in to bitcoin, but ironically, the very fact that Wall Street hasn't gotten in yet may simultaneously be a key factor in why bitcoin still is an uncorrelated asset in the first place.

As long as there is no counterproof furnished by reality, Bitcoin will exist as an uncorrelated asset in many people's heads because of its founding philosophy that makes up a great part of Bitcoin.

Increasingly recognized as an asset class uncorrelated to most others, bitcoin and crypto should be part of any smart investor's portfolio.