Dumb question maybe but yolo. How does one have a basket of names that are negatively correlated, while also mostly positive returning? Isn't that a paradox? If DIS goes up and FOX goes down, then one of these has to be a loser. Unless your RR is skewed to strong winnings net, then negative correlation seems like a poor approach.
Dumb question maybe but yolo. How does one have a basket of names that are negatively correlated, while also mostly positive returning? Isn't that a paradox? If DIS goes up and FOX goes down, then one of these has to be a loser. Unless your RR is skewed to strong winnings net, then negative correlation seems like a poor approach.
I would also like to know the same.