Less Correlation Gives Stock Pickers Opportunity
We’d like to welcome our first blog from Benn Dunn who runs our Risk Consulting practice. I’m a little biased, but I believe that Benn is one the smartest risk minds in investing today. Check out this article on Risk.net where he is quoted on the topic of correlation in portfolio management.
While lower correlations across asset classes and within markets are generally thought of as positive for security selection, the path to lower correlations can often be confusing. Traditional risk models deliver confusing and difficult to interpret results during these regime shifts. Fortunately, Alpha Theory is not dependent on trailing correlations when making portfolio construction recommendations.
Click here to read the full article on Risk.net.