Risk warning on volatility and correlations

sine wave

It is well known that both volatility and correlation play a role in the riskiness of financial portfolios: higher volatility and/or higher correlations between investments both increase risk. Conversely, if either of these two drops, the portfolio risk also drops. From a return and risk perspective the current low correlation environment has been a boon to stock-pickers, as we pointed out in our November article. But such situations – when both volatility and correlations are in the low to norm

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: