Business, Legal & Accounting Glossary
An investment strategy which utilizes the tendency of stocks to move together in order to minimize risk exposure. Combining stocks with low correlation reduces the riskiness of a portfolio as their returns are countercyclical to each other thus, a rise in one stock can mean a fall in the other.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Correlation Trading are sourced/syndicated and enhanced from:
This glossary post was last updated: 20th November, 2021 | 0 Views.