Risk and portfolios
Staying in the game matters more than any single win. Measure risk, spread it out, and size your bets.
- VolatilityThe most used number in risk: how much returns jump around.
- DiversificationWhy many small bets beat one big one.
- CorrelationMeasuring how two things move together.
- How much to betThe Kelly rule: grow fast without going broke.
- Value at riskOne number for how bad a normal bad day gets.
- HedgingTaking a second position to cancel a risk you do not want.
- LeverageBorrowed money magnifies everything.
- Track quizFive questions. Get four right to finish the track.