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if an investor desires diversification, should he or she seek investments that have a high positive correlation?

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Answer: An investor should select securities that are less linked or negatively correlated who wants to diversify their portfolio or holdings.

Step-by-step explanation:

Relying on the blending of various assets in a portfolio, diversification is a strategy for lowering investment risk. As the assets would respond uniformly to a specific economic development or market shift, a large positive correlation is inappropriate. A portfolio's risk is raised as a result. Since assets would respond to a change in the opposite way, a negative correlation is advantageous for lowering investment risk.

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