Discover how to calculate covariance to assess stock relationships and optimize your portfolio, balancing risk and potential ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Portfolio variance is a measure of the dispersion of returns of a portfolio.

Markowitz introduced portfolio selection, also known as the modern portfolio theory, in 1952. He was the pioneer who showed how to reduce the variance of the investment portfolio via diversification.

Voices is an occasional column that allows wealth managers to address issues of interest to the advisory community. Kris Carroll is chief investment officer at Carroll Financial Associates in ...