Harry Markowitz famously quipped that diversification is the only free lunch in investing. What he did not say is that this is only true if correlations are known and stable over time. Markowitz’s ...

Tyler Vigen’s book, Spurious Correlations, is warm, funny and makes several very important points. According to Vigen, his book is based on dozens of correlations between completely unrelated sets of ...

a relationship in which a rise in the value of one variable is accompanied by a fall in the value of another. We represent inverse relationships by numbers known as correlation coefficients. A ...

Let’s talk about the venerable 60/40 portfolio. For decades, this has been the conventional way to provide moderate-risk, long-term growth in a retirement portfolio. Processing Content The classic mix ...