Tag Archives: New Economies

Jul 9, 2020

A Conundrum in a Different Key

Volatility, dispersion, and correlation are elements of what we’ve elsewhere characterized as The Active Manager’s Conundrum. Active managers should prefer: Low volatility, which is typically associated with higher returns High dispersion, which means a larger payoff for correct stock selections High correlation, which reduces the opportunity cost of a concentrated portfolio The conundrum arises because…

READ


Sign up to receive Indexology® Blog email updates