Correlation & Portfolio Exposure: When Trades Share Risk
SMALL PRICE · BIG VALUE · SHORT EDITION
Different symbols are not always different risks: three trades can still be one bet. This guide adds a whole-account check to trade sizing so shared risk is counted, never hidden by a correlation figure (a measure of how closely two things moved together).
What's inside
- List positions, split currency pairs and map shared drivers
- Measure how things moved together, carefully
- Keep risk budgets apart from models, and test bad cases
- Decide, record, review and practise
What you get
- A 23-page PDF with clickable contents, readable on phone, tablet or desktop
- Correlation & Exposure Worksheets (fillable) + invented returns data (CSV)
- Key terms in bold, explained in plain English, and sources listed at the back
Included free with Risk, Ruin & the Size of the Bet. The £2.99 price applies only when you buy this short edition on its own.
Readers worldwide: worked examples use UK rules where rules matter. If you live elsewhere, check your own regulator and local rules; the method still applies.
Educational content only; not financial, investment, tax or trading advice, and not a recommendation of any product, provider or strategy. Every example number is invented unless a source is given. Trading leveraged products carries a high risk of losing money. Bacchus Analytics Limited, trading as Traderz Life.
Questions: hello@traderzlife.co.uk