Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Multi-Dimensional Diversification: Improving Portfolio Selection Using Principal Component Analysis

Multi-Dimensional Diversification: Improving Portfolio Selection Using Principal Component Analysis

Rankin, Rufus G.

Paperback

Investing & Finance

ISBN10: 153317850X
ISBN13: 9781533178503
Publisher: Createspace
Published: May 17 2016
Pages: 60
Weight: 0.27
Height: 0.16 Width: 6.00 Depth: 9.00
Language: English
Is your portfolio really diversified? In recent years, markets have become increasingly interconnected, while low cost ETFs and mutual funds have made more and more assets and strategies available to investors. While this has evened the playing field for investors, it has also made it much harder to select appropriate investments. Diversification is not a free lunch! It takes research to identify truly uncorrelated assets - a task that seems to be getting harder all the time. Simply adding more assets does not necessarily increase diversification because many investments have the same underlying return drivers. Multi-Dimensional Diversification introduces Principal Component Analysis (PCA), and shows how this tool can help to identify the underlying return drivers in any set of investments - enabling you to identify truly diversifying assets while avoiding unnecessary and potentially harmful over-concentration.

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