Correlated V Non-Correlated Investment

Published / Last Updated on 01/05/2014

Some people may have a balanced investment portfolio which will even out the funds that have losses with the funds that have growth.But you need to be aware if the funds are correlated. This is where the investment market you are invested in is related to another market. This would result in a fund that is affected by the rises and falls of the related market.This means that if you what a balanced portfolio you don’t want funds that could be related to each and as a result they could both fall at the same time.

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