The optimal rebalancing corridor width increases as the correlation between an asset class and the rest of the portfolio increases, because further divergence from target weights is less likely when asset classes move in sync.

Authors

• Person: Not available Organization: CFA Institute
  Principles of Asset Allocation | CFA Institute

Sources

• Principles of Asset Allocation | CFA Institute www.cfainstitute.org CFA Institute via serper

Referenced by nodes (1)

• asset classes concept