# Hedging

How Risky is a Correlated Hedge?

Investing
Hedging
Correlation
Risk-Management

A brief analysis of how much risk you can reduce by hedging with correlated assets. Even in a perfect world, a 90% correlation limits risk reduction to about 50%.

How Risky is a Correlated Hedge?

Investing
Hedging
Correlation
Risk-Management

A brief analysis of how much risk you can reduce by hedging with correlated assets. Even in a perfect world, a 90% correlation limits risk reduction to about 50%.

© 2024 Ryan Gibson