Unforseen

I don't know if this helps...but take a look at this...

asset 1 (mvs' are smoothed intra-quarter and refreshed at end of year)
quarter 1 - 100
quarter 2 - 100
quarter 3 - 100
quarter 4 (end of year) - 90

asset 2 (mv's are refreshed quarterly)
quarter 1 - 100
quarter 2 - 85
quarter 3 - 105
quarter 4 (end of year) - 90

if you compare asset 1 and asset 2, their correlations will be biased downwards due to smoothing, even though they both end up at the same mv at end of the year.

and asset 1 will have low variance and standard deviation than asset 2 due to smoothing....

this is how I keep is straight in my mind.