Negatively correlated assets

In times of increasing instability investors tend to invest in gold and pass from the iShares MSCI Global Metals & Mining Producers ETF (PICK).

Note: Pick seeks to track the investment results of an index composed of global equities of companies primarily engaged in mining, extraction or production of diversified metals, excluding gold and silver.

It is always good to have in portfolio actives with negative correlation, so you dont lose wehn the market goes down. In our case, pick and brent have a negative correlation with Gold and viceversa.. Thus, using negatively correlated investments in his portfolio helps to reduce the overall volatility of the portfolio.