Alternative Investments 2.0: How To Diversify
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1 Positive stock and bond correlation: Morgan Stanley Wealth Management Global Investment Office, Bloomberg. As of April 1, 2025. Correlation: This is a statistical measure of how two securities move in relation to each other. This measure is often converted into what is known as correlation coefficient, which ranges between -1 and +1. Perfect positive correlation (a correlation coefficient of +1) implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. Alternatively, perfect negative correlation means that if one security moves in either direction the security that is perfectly negatively correlated will move in the opposite direction. If the…
