Hidden Correlation
06-hidden-correlation
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Hidden correlation.
You own 10 different stocks.
You think you are diversified.
But when the market crashes, 9 of them drop together.
Because they are all tech.
Your diversification was an illusion.
These are not rare mistakes.
Ver raw
Hidden correlation. You own 10 different stocks. You think you are diversified. But when the market crashes, 9 of them drop together. Because they are all tech. Your diversification was an illusion. These are not rare mistakes.