Sentences with phrase «uncorrelated asset classes»

Markowitz won the 1990 Nobel Prize in Economics for creating Modern Portfolio Theory, the idea that having uncorrelated asset classes in a portfolio can both increase returns and reduce risk.

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.

An alternative approach that rebalances many uncorrelated asset classes, each with returns equivalent to the S&P 500, strains to do better than 4.5 %.

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

«Bitcoin is an uncorrelated asset class and a valuable hedging mechanism,» Lee told CoinDesk.

Not exact matches

That leaves us with gold, a time - tested hedge against recessions that is largely uncorrelated to stocks and many other asset classes.

Just in case, this might be a good time to examine asset classes that are not correlated to the equity market or the «uncorrelated».

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.»

The idea is if you mix enough asset classes together that are all doing different things, and as we say in the business, uncorrelated, you get a better result, more diversification and a way to grow your money in a safer way.

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.

Hedge - fund strategies and non-traditional asset classes such as private equity and infrastructure are repeatedly touted for their significant diversification benefits and returns that are uncorrelated to stocks and -LSB-...]

But there are many alternative asset classes which are uncorrelated to each other that are worth considering as well.

That's because asset classes generally are «uncorrelated,» that is, as one declines in value, another rises.

Commodities have historically provided investors with a hedge against inflation, as well as returns that are uncorrelated to more traditional asset classes, such as stocks and bonds.

Which demands I construct an alternative portfolio — a portfolio that's diversified across both asset classes & geographies, that's both defensive & offensive, and that's ideally as uncorrelated (both internally & externally) as possible.

Gold is also uncorrelated with other asset classes like stocks and bonds.

Although cryptocurrencies are uncorrelated with any other asset class, they tend to follow bitcoin's lead.

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