Effective Number of Holdings: A Concentration Check

A trader opens a brokerage statement and counts twenty tickers. Twenty names feels diversified. Then two of those positions have run so far that together they carry roughly half the…

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Tail Dependence: Why Diversified Assets Crash Together

A few years back I held six positions spread across different sectors, the kind of book that looks diversified on paper. On the three worst sessions of that stretch, all…

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