Understanding the correlation between various asset classes is crucial for investors aiming to build a diversified investment portfolio. Correlation measures the statistical relationship between the ...

We find that the Digital Assets Bitcoin and Ethereum show variable correlation of return coefficients with traditional assets, but these increased sharply with risk-on assets, like equities, after the ...

Our results indicate inflation is a strong driver of the higher correlation in asset returns, even if the relationship is non-linear, with the non-linearity evident when inflation moves above Fed ...

A portfolio of assets that don’t move in tandem may potentially lower overall portfolio risk. Positive returns from uncorrelated assets may boost overall portfolio performance potential. A mix of ...

Forbes contributors publish independent expert analyses and insights. Portfolio diversification represents one of the fundamental principles of investment management. By strategically allocating ...

What Is Strategic Asset Allocation? Strategic asset allocation refers to the long-term investment strategy that involves allocating a portfolio's assets among different asset classes to achieve an ...

The historical average investment return by asset class for the last 40 years might surprise you. You have many options when ...

Some news sources have been fond of comparing Bitcoin (BTC) price action and other assets. In particular, the two most commonly compared asset classes are gold and tech stocks. While a correlation ...

Most readers are probably familiar with the basic math behind interest rates and bond prices: When interest rates go up, bond prices go down. As the market recalibrates what a bond’s future cash flows ...

How many asset classes are there? An asset class is a group of investments with similar financial characteristics. As a result, they react similarly to market events. Asset classes are the building ...

One of the keys to a well-rounded portfolio is diversification through different asset classes. Each class has its own unique characteristics and risk-return profile, and knowing the right mix can ...