Assertion: portfolio's risk | /r/HasProperty | reduced
Facets:
value: as long as correlations are
type: OTHER
value: quickly
type: MANNER
value: by adding assets
type: MANNER
Source sentences:
text: By adding assets with a negative covariance to a portfolio, the overall risk is quickly reduced.
text: Although the risk is reduced as long as correlations are not perfect, it is typically forecast (wholly or in part) based on statistical relationships (like correlation and variance)
text: Risk is also reduced because it's rare that the entire portfolio would be wiped out by any single event.
text: Risk can be reduced by creating a diversified portfolio of unrelated assets