14 February 2018
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Andrew Harman: "Averages cover up a lot of things."
Using an average to track asset correlations can be misleading as it can cover up big swings in varying market environments, according to First State Investments.
Portfolio manager Andrew Harman used the example of correlations between the MSCI World index and global bonds since 1989. It showed equities and bonds had an average correlation of 0.1% in that period,...
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