I think curves are not shown negatively correlated ….because broadly both of them are moving up ..right ?
And the smoothing took place and looked beautiful because broadly both its constituents are pointing same direction with just deviations at narrow level.
How can we get strategies with zero correlation ? correlation as a concept we use to mitigate risk. And traders use this at asset class level to take advantage of price movement. But not able to understand the possibility at strategy level on same asset class. That too 4 or 5 strategies having near to zero correlation on same instrument is something I am not able to understand by logic. I am saying this because, we cannot have a ideal coefficient maintained even for 2 set of rules. How can we manage on 4 or 5.
And the smoothing took place and looked beautiful because broadly both its constituents are pointing same direction with just deviations at narrow level.
How can we get strategies with zero correlation ? correlation as a concept we use to mitigate risk. And traders use this at asset class level to take advantage of price movement. But not able to understand the possibility at strategy level on same asset class. That too 4 or 5 strategies having near to zero correlation on same instrument is something I am not able to understand by logic. I am saying this because, we cannot have a ideal coefficient maintained even for 2 set of rules. How can we manage on 4 or 5.