What Is Correlation?

Correlation is a key indicator of how alternatives behave. It's a statistic that tells us how closely the returns of one investment track another investment's returns over time. When it comes to correlations, lower is usually better. What happens when you invest in assets with low or no correlation to the other assets in your portfolio? When some investments are performing poorly, others will likely be performing well. This diversification may help reduce your portfolio's overall volatility. For illustrative purposes only.

ALTERNATIVES ARE THE NEW REALITY

Discover why investors are looking beyond traditional assets.