u poor displaced tool; i make 15k a week doing absolutely nothing but collect rents...u on the other hand are on income support and housing benefits...u know, one of the many pretendies hanging around here. u are boring man, thats the truth..nothing u can do about it, i know it sucks and u are all ugly and alone but heck u gotta accept your limitations innit.
If and only if the correlation between the securities is less than one . If the securities are significantly positively correlated, the value of diversification can be very limited. If the securities are significantly negatively correlated, the value of diversification can be very considerable. This is relatively easy to write out in mathematical form, but of course it's intuitive too.