The Morningstar Dictionary - Correlation

This key measure helps you find investments that don't move in lock-step, allowing you to build a diversified portfolio.

Christian Charest 7 July, 2017 | 5:00PM

 

 

The basic premise behind diversification is easy enough to understand: Spread your investments among assets that react differently to market events, so that if something bad happens your investments don't all crash at the same time.

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Christian Charest

Christian Charest