™A $10,000 position moving 10% changes by $1,000; correlation helps place that movement in the context of the wider portfolio.
Risk & Portfolio
Correlation
A statistical measure of how two assets have moved in relation to one another.
Plain-English context
Why it matters
This concept helps describe how one position or behavior can affect the resilience of an entire portfolio.
Assuming Correlation removes risk rather than describing or redistributing part of it.
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