Maybe I'm using the wrong terminology, but isn't a "hedge" something you do to reduce the risk / variance of your investment? If the start-up scene tanked, both

Maybe I'm using the wrong terminology, but isn't a "hedge" something you do to reduce the risk / variance of your investment? If the start-up scene tanked, both your house and your incubator would do less well. Therefore, both markets are correlated and do the opposite of reducing risk.