• Joydeep Sen
• 06 Apr, 2021

The right perspective to an asset class is that of allocation in your portfolio. One of the reasons for allocation to various asset categories in your portfolio is that ideally there would be a negative correlation between the asset classes, to create a balance in your portfolio. In reality, negative correlation is not found, but a low positive correlation is desirable. This would make your portfolio less volatile as all the investments would not go up or down at the same time.
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