The Value Perspective cover image

The Value Perspective with 10k Diver REPLAY

The Value Perspective

CHAPTER

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.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner