Sentence examples for correlation assets from inspiring English sources
Diversification theory as per modern portfolio theory talks about portfolio diversification, which makes risk-averse market agents tend to maximize portfolio return and minimize portfolio risk by making up their portfolios with low correlation assets.
As the authors in the paper point out, the severity of a financial crisis depends on the correlation between assets of different financial institutions, the sensitivity of these assets to market conditions and linkages between the financial institutions and the rest of the economy.
As for the correlation of assets, we are also seeing that line blurring and some asset classes that were highly correlated are no longer and they are not constant.
Then the correlations with assets variable come out statistically significant whereas correlations with income are smaller and non-significant.
They find that in all three cases trading volume is positively correlated with higher volatility.Mr Haldane finds that both volatility and correlation between asset classes have increased in tandem with volume.
On the whole, the results do show a clear correlation between asset strength and brand reputation.
The addition of a low correlation timberland asset will increase the diversification of an investment portfolio.
Conversely, if we had perfect correlation of asset holdings, i.e., (IC=1,) then intergenerational wealth mobility would be null.
In summary, our model design is relatively reliable in the context of the known empirical patterns such as the existence of jumps, the volatility smile and the negative correlation between asset returns and volatilities.
Barclays expects much lower correlation among asset classes as the macro trade wears off and trading becomes less dominated by "the twists and turns of an all powerful global financial crisis and the resulting economic cycle".
