Ten Stocks Are Not Always Diversification
Ten assets tied to the same country, sector or economic factor can fall together in a crisis. Genuine diversification balances different sources of risk within one portfolio.
What Correlation Tells Us
Correlation measures how two assets move together. Historical correlation is not fixed and can rise in a crisis, but it is still a better starting point than simply counting holdings.
Asset Allocation
Equities, bonds, cash, gold, property and high-volatility digital assets have different growth and risk drivers. Suitable weights depend on goals, horizon, currency and loss capacity; no percentage is universal.
Rebalancing
When one asset rises rapidly, its portfolio weight and risk contribution increase. Calendar- or threshold-based rebalancing restores the target risk mix but can create tax and transaction costs.
Checklist
- Write down the economic risk behind each holding
- Measure country and currency concentration
- Review normal- and crisis-period correlations separately
- Set the rebalancing rule before trading
How Should You Use the Result?
This analysis is designed to make assumptions visible and reproducible, not to declare one universal winner. Change the amount, start date, currency and contribution frequency in the calculator to see how sensitive the outcome is. Review the worst window as carefully as the best one before making a decision.
A real investment can differ because of execution price, bid-ask spread, commission, tax, product expenses and the data provider's closing-time convention. The figures are therefore a gross historical comparison, not a personal return or a forecast.
