You’ve heard of diversifying your assets, but how do you DOUBLE DIVERSIFY THEM??
Asset correlations is an important concept in finance and helps a portfolio manager make asset allocation or diversification decisions. It is a statistical measure that describes how closely two securities move relative to one another, and always has a value of between -1 to 1.
How to interpret asset correlation?
- A correlation of 1 means there is a perfect positive correlation between the 2 assets, meaning the 2 asset moves in tandem, if one goes up, the other goes up
- A correlation of -1 means there is a perfect negative correlation between the 2 assets, so if one goes up, the other goes down
- A value of means there is NO relationship between the 2 assets, typically an ideal candidate for portfolio diversification
Check out the correlations 1) Between crypto and other assets, and 2) BETWEEN different cryptos with our diagram
Any traditional investors with no crypto exposures can use IX15 to achieve DOUBLE diversification benefits (across assets as well as within the crypto universe), while existing crypto investors can use IX15 to reduce the overall risk of their portfolios while still achieving outperformance through IX15’s smart beta strategy!
**Isonex Capital is dedicated to the growth of digital currencies within the global marketplace and in facilitating investment into the blockchain ecosystem. We strongly believe in investor protection through security and transparency. We are committed to helping newcomers gain an understanding of the risks involved in this new asset class. If you would like to find out more about us, visit https://isonex.io