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The Value Perspective with 10k Diver REPLAY

The Value Perspective

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How to Avoid the Volatility Tax on Uncorrelated Stocks

Anita, we were talking about the volatility tax during the back of 10K a piece. But it's actually possible to get an even higher return than the 6% per day if the stocks are sufficiently negatively correlated and so on. So you can take advantage of negative correlations in a big way. If you can find two assets that are reliably negatively correlated, then you can build a portfolio out of them That gets even higher returns than what each individual asset can deliver over a long period of time.

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