I remember when I was first learning about investing. I was having a conversation with another advisor about high-yield bonds. His approach went something like this: Live off the coupon! If you hold the high-yield bonds forever, who cares if the bonds fluctuate in value!? Don’t Evaluate Assets in Isolation The above logic is rife […]
correlation
Why Drawdown Correlation Is a Metric Worth Considering
Why is Drawdown Correlation a metric worth considering? More than that, what is Drawdown Correlation? If correlation measures the performance of one investment relative to another over time, then drawdown correlation makes that measurement only when that first investment is in decline. (Full disclosure: I had not yet found a term that describes correlation exclusively […]