Correlation
A statistical measure (−1 to +1) of how two return streams move together. Diversification only works between low-correlation holdings — and correlations tend to rise toward 1 in crashes, exactly when diversification is needed most. Strategy-level correlation matters as much as asset-level: two trend systems on similar ETFs are one bet, not two.
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Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.