Journal of International Business and Economy

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Correlation of Uncorrelated Asset Classes
Jeffry Haber and Andrew Braunstein
Volume 9, Number 2, Fall 2008, pp. 1~12

Diversification of a portfolio has long been held as one of the cornerstones of modern portfolio theory and a key driver of investment return over the long term. Correlation is the statistical measure used to quantify diversification. The degree to which asset classes correlate will determine the degree of portfolio diversification (or lack thereof). Many investment products are being sold that claim to be ¢®¡Æuncorrelated¢®¡¾ with existing portfolio holdings. This paper examines the concept of ¢®¡Æuncorrelated¢®¡¾ in theory, and conducts a test of correlation utilizing two series of random numbers, as well. For many reasons, labeling products as ¢®¡Æuncorrelated¢®¡¾ could be incorrect and misleading.

Key Words: correlation, diversification, portfolio, finance, investments, noncorrelated, uncorrelated

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Is There a Decline in Teaching Ethics in US Business Schools?
James P. Beaghan
Volume 9, Number 2, Fall 2008, pp. 13~21
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John P. Meyer
Volume 9, Number 1, Spring 2008, pp. 113~136