Adding one stock to a portfolio consisting of 1 stock currently. Correlation with ZZ = 0.0 Correlation with XX = -0.2 which one would you pick?
The one with the lower correlation. I would pick XX.
quite right.
Adding one stock to a portfolio consisting of 1 stock currently. Correlation with ZZ = 0.0 Correlation with XX = -0.2 which one would you pick?
The one with the lower correlation. I would pick XX.
quite right.