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Correlation is not binary, it’s on a 0-100% scale. For more detail: https://en.m.wikipedia.org/wiki/Modern_portfolio_theory https://en.m.wikipedia.org/wiki/Mod
by grivescorbett 8y ago
Correlation is not binary, it’s on a 0-100% scale.
For more detail: https://en.m.wikipedia.org/wiki/Modern_portfolio_theory https://en.m.wikipedia.org/wiki/Modern_portfolio_theory
- michaelcampbell 8y agoAlso, correlation changes all the time, and sadly tends to converge on the way down, but not up.
- alexis2b 8y agoMore like -100% (perfectly anti-correlated) to +100% (perfectly correlated) through 0% (perfectly decorrelated) and everything in between!
- grivescorbett 8y agoCorrect my bad, this is important :)