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Limits of correlation (applied)

Correlation is a standardized covariance (i.e., translated into unit-less form with volatilities). It cannot be used alone: (i) it can be "distorted" by low volatilities, and (ii) it does not give information revealed by the scatter (in this example, both hedge fund series are similarly correlated to the Russell 3000 but their (out-) performances are very different
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