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3 assets that may not diversify as well as you think

Diversification is a core principle of sound investing: A portfolio that includes assets with different performance characteristics often leads to better risk-adjusted returns than one that relies on a single asset class. 3 assets that may not diversify as well as you think But building a diversified portfolio can be easier in theory than practice, as many asset classes often touted as good portfolio diversifiers may not live up to their reputation. And being untethered to the overall equity market can lead to better risk-adjusted returns when real estate is added to a diversified portfolio. As a nontraditional asset, cryptocurrency has had an extremely low correlation with most other major asset classes.But there are two reasons crypto may not make the best portfolio diversifier.

Hindustan Times

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