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Correlation, and Why Alternatives Earn a Place in a Portfolio

Alternative Investments • Beginner Investing • 7 min

This lesson connects the portfolio-construction case for everything else in this module. It's not just about chasing higher returns. It's about finding returns that move DIFFERENTLY from what you already own. Correlation measures how two investments' returns move together over time. It ranges from perfectly correlated (moving in sync) to uncorrelated (moving independently) to negatively correlated (moving in…

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