Valores

Attribute 2 is not wrong over a shorter time horizon . True correlation is measured over longer periods and indicates relatively stable correlations. Any temporary spikes in correlation due to turbulence/volatility is simply a statistical property of correlations and is inconsequential to long run returns. Collier's argument is that correlations do increase temporarily due to volatility in turbulent times , but CFAI says you can't take that to the bank and claim increased returns