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Correlation, Covariance, and Diversification

Medium
Statistics & ProbabilityCorrelation

Problem

Describe the statistical concepts behind correlation and covariance, and explain how they impact portfolio diversification.

Practicing as: Risk Analyst interview at Natixis

Hi, I'll play your Natixis interviewer for the Risk Analyst role. Candidates describe these interviews as mostly positive and moderately difficult, so expect me to be friendly and conversational. Take your time with the question above and answer like we're in the room.

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Natixis Risk Analyst Interview QuestionsNatixis Interview Questions
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