the Pragmatic Investor

[aptus]

Hi Don,

Thanks for the post on correlations -- as well as the examples.

For those that don't know...

You should try to select stocks that have the lowest correlations between them. The AI Asset Allocator will show you the correlations of all stocks in a research portfolio, so you can quickly select the right ones.

When looking for low correlations it's best to use longer time periods (i.e. more historical data) rather than shorter ones. I like to use 3+ years.