Definition
Modern portfolio theory (MPT) asserts that an investor can achieve diversification and reduce the risk of losses by reducing the correlation between the returns of the assets selected for the portfolio. The goal is to optimize the expected return against a certain level of risk. Key Takeaways Followers of MPT seek a zero or near-zero correlation in the price movements of the various assets in a po
In Panel Profits
In the Panel Profits market platform, Correlation and Modern Portfolio Theory applies standard portfolio management principles to comic assets and physical collections.
Common mistakes
Do not infer unobserved prices.