Sentence examples for correlation of assets from inspiring English sources
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.
Institutions with greater systemic risk higher insured and short-term debt, higher risk of assets, greater correlation of assets with marketwide or economywide risks, larger size that renders them too big to liquidate swiftly must face a greater fee.
Conversely, if we had perfect correlation of asset holdings, i.e., (IC=1,) then intergenerational wealth mobility would be null.
Where we saw a large correlation of varied assets melding over the last few years, we are now seeing the correlation continue … only on the downside.
We emphasized in a chapter how to estimate portfolio risk, and how to remove the market noise in the empirical correlation matrix of asset returns by using eigenanalysis used in risk management.
If there were no bequests in our economy, which occurs when the bequest motive is (left. rho =0,right. ) the intergenerational correlation IC of asset holdings would be negative.
Therefore, making use of the strong law of large numbers and the stability assumption, we can measure the degree of mobility in the long-run by using the steady-state value of the intergenerational correlation IC of asset holdings between two successive generations as in Bossmann et al.
Furthermore, Mr. Williams said, close correlation of seemingly disparate assets implies that many portfolios may not be as diversified as we may think.
Systemic risk is modeled as the endogenously chosen correlation of returns on assets held by banks.
Instead, he focuses on asset allocation and on expected returns, volatility and correlations of specific asset classes over long periods.
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.
