Strategy correlation
Risk & psychologyThe extent to which two systems lose money at the same time.
In plain terms
Diversification is defined by whether drawdowns coincide, not by whether the rules look different.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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The extent to which two systems lose money at the same time.
Diversification is defined by whether drawdowns coincide, not by whether the rules look different.