Stocks which are positively correlated (i.e. stock prices move in the same direction) do not give you the same diversification benefits e.g. AIB & Bank of Ireland. If you invest your money into banking stocks it is likely that they will go down and up together depending on market conditions.
Why Diversification works in the Stock Market
Posted by
bloggertone under Finance
From http://bloggertone.com 5245 days ago
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