When it comes to portfolio construction and asset allocation – not all risk is equal. You’ll often hear different standard allocations – for example 60/40, 80/20 etc., but even in a set investment mix – the risk doesn’t remain constant. Nor is the risk of similar allocations (for example, two different 60/40s) equal, simply because the securities held in each are different.
Watch another video from HoLo:
What Is Risk Correlation?
Passive Vs. Active Investing
