Assets with high correlation are likely to experience similar performance, which does not reduce portfolio risk and may lead to higher volatility.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (2)

• portfolio risk concept
• volatility concept