A low covariance with the rest of the portfolio will lower the denominator. As long as E(r) is higher than r_f, it’s possible to end up with a higher sharpe. O

A low covariance with the rest of the portfolio will lower the denominator. As long as E(r) is higher than r_f, it’s possible to end up with a higher sharpe. Obv just leverage if you want a higher expected return.