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Correlation

1-11 out of 11 results.

BHP v Rio v Fortescue: it's all about the iron ore price

Don’t look at an earnings forecast or a DCF valuation or a broker target price for a mining company. Share price forecasts are only as good as the commodity price assumptions they are based on, and they are a guess.

What drives Australian versus global equity performance?

We tend to think of the 'stockmarket' as one beast, but it pays to know the drivers of the different parts, especially global versus Australian stocks. The outlook favours global due to better sector exposure.

‘Super-defensive equities’ may rescue struggling 60/40 portfolios

The 60/40 portfolio has been the mainstay of 'default' Australian investing, but large allocations to bonds compromise returns when rates are low. Strategies with exposures negatively-correlated to equities are needed.

Managing risk using asset diversification

Investors should construct an ‘optimal portfolio’ that broadly falls on the efficient frontier. A ‘high growth’ balanced portfolio can deliver higher returns with lower risk than equities alone.

What role should hedge funds play now?

After some poor experiences during the GFC, hedge funds offering uncorrelated returns have greater appeal as traditional markets struggle, but don't pay up for simple market exposure.

Why bother with hedge funds?

Despite negative headlines regularly aimed at hedge funds, they experienced strong inflows in the six years until the end of 2015. What are the benefits of hedge funds for a portfolio?

The long and short of hedge funds, Part 2

Part 2 focusses on the criticisms that are often levelled at hedge funds and how to manage these disadvantages to your level of tolerance. The challenge for the hedge fund industry is to deliver more retail-targetted products.

Diversification lessons from the GFC

While diversification makes sense in theory, how did it hold up during the global financial crisis? Follow the crisis through the lens of correlations and diversification.

Diversification: past, present and future

Follow diversification's past, present and future in this three-part series. Part one takes us from Shakespeare’s Merchant of Venice to the classic strategic asset allocation pie chart used throughout the investing world today.

Impact of deficits and surpluses on stock market returns

In the last part of our Labor v Liberal series, we look at the impact deficits and surpluses have had on equity returns. The statistics show an interesting trend of high performing equity markets in periods of deficit.

Inside the hidden world of diversified income

Diversified income funds have been extremely popular and have performed well recently, but ‘income’ is often not really income at all. If there is a reversal in some or all of the underlying factors, returns are at risk.

Most viewed in recent weeks

Super changes, the Budget and 2021 versus 2022

Josh Frydenberg's third budget contained changes to superannuation and other rules but their effective date is expected to be 1 July 2022. Take care not to confuse them with changes due on 1 July 2021.

Noel's share winners and loser plus budget reality check

Among the share success stories is a poor personal experience as Telstra's service needs improving. Plus why the new budget announcements on downsizing and buying a home don't deserve the super hype.

Grantham interview on the coming day of reckoning

Jeremy Grantham has seen it all before, with bubbles every 15 years or so. The higher you go, the longer and greater the fall. You can have a high-priced asset or a high-yielding asset, but not both at the same time.

Whoyagonnacall? 10 unspoken risks buying off-the-plan

All new apartment buildings have defects, and inexperienced owners assume someone else will fix them. But developers and builders will not volunteer to spend time and money unless someone fights them. Part 1

Buffett says stock picking is too hard for most investors

Warren Buffett explained why he believes most investors should not pick stocks but simply own an S&P 500 index fund. "There's a lot more to picking stocks than figuring out what’s going to be a wonderful industry."

Should investors brace for uncomfortably high inflation?

The global recession came quickly and deeply but it has given way to a strong rebound. What are the lessons for investors, how should a portfolio change and what role will inflation play?

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