Title
"Intraportfolio Correlation": An Application For Investments Students
Document Type
Article
Publication Date
1-1-2012
Publication Title
Global Conference On Business & Finance Proceedings
Department
Business and Leadership
Abstract
"Intraportfolio correlation," a measure of portfolio diversification, is becoming increasingly popular among investment practitioners. However, far from providing the "free lunch" its adherents assert, the intraportfolio correlation is a simplistic and flawed measure that ignores material information about the relationships among portfolio assets. Deconstructing the intraportfolio correlation therefore can be a productive and educational exercise (and a cautionary tale) for students of portfolio theory. In this paper, we describe the measure and offer suggestions for incorporating it into an introductory investments course.
Volume
7
Issue
1
pp.
389-394
ISSN
1931-0285
Provider Link
http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=73204608&site=ehost-live&scope=site
Citation
Livingston, Lynda S.. 2012. ""Intraportfolio Correlation": an Application for Investments Students." Global Conference On Business & Finance Proceedings 7(1): 389-394.