[Series 66] 21, Diversification Correlation and Rebalancing

Podcast: Open Exam Prep · Ran Chen, EA, CFP®

Opublikowano: 2026-10-14

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How diversification reduces unsystematic risk without eliminating market risk. - How correlation coefficients range from -1.0 to +1.0 and affect risk reduction. - Why any correlation coefficient below +1.0 provides diversification benefits. - How calendar and corridor rebalancing strategies restore target asset allocation. - How investment adviser representatives evaluate overall portfolio risk under f...