Morningstar’s Bragazza: Diversify your diversifiers
It’s not just about historical correlations or equities and bonds
Correlation
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Atlantic House adds fourth fund to product stable
Atlantic House Uncorrelated Strategies has attracted £30m so far as volatility ramps up
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Upended correlations put convertibles at risk
Investors need to ‘tread carefully’ with prospect of surging bond yields
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Four funds with low correlation to global stock markets
Diversification is not as simple as buying funds in different assets and sticking them together
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Bond and stock synchronicity major Q4 worry – BlackRock
BlackRock has identified a higher correlation between equity and bond prices and the US election as the greatest worries in the short-term.
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Investment Strategy Correlation regime change
The financial crisis taught us that in extreme cases the major asset classes are all highly correlated and, as asset allocators have since learned, achieving appropriate diversification for clients is now harder than ever.
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Two places to look for negative correlation
In a world where one can no longer rely on bonds for negative correlation, one has to look for alternative diversifiers.
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New asset classes needed
Asset class correlation has increased substantially over the past five years and the majority of fund managers now cite it as one of their key investment risk factors, according to a study by CRISIL Global Research & Analytics (GR&A).
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Correlations breaking down points to dangers ahead
Paul Hughes explains why correlations are set to break down and considers the investment impact.