How to Optimize Your Portfolio for Diversification

Diversifying a portfolio is about putting your money into assets that you think are going to move in an uncorrelated way. Constraining the likelihood i'm going to have a big movement up in exchange for a better belief that I'm not going to have one. Humans being risk averse tend to be willing to make that trade off they're likely to accept a smaller but more secure benefit from their investments. You can go from kind of very Basic easy to visualize constraints like how much how much money you're going to put in your portfolio And and kind of making sure that you're sector neutral. In terms of constraint you can go all the way up to like Up some pretty sophisticated