Question
The Correlation Risk slider is a tool that represents diversification levels in a portfolio. It offers an understanding of portfolio balance by showing how different investments within the portfolio are correlated. If the investments are highly correlated, they will likely move in the same direction under the same market conditions, which could increase risk. On the other hand, if the investments are not highly correlated, they may move in different directions, providing a balance and reducing risk. This tool can help investors make informed decisions about their portfolio diversification and balance.
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Design elements such as color-coded data and directional arrows in the "Risk Summary" widget highlight potential downside and upside scenarios, which help the audience focus on key investment risks and returns. Similarly, the "Correlation Risk" slider represents diversification levels and offers an understanding of portfolio balance.
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