Hi Everyone,
This is a bit of a finance question. To simplify things, let's say I have 3 assets (A, B, and C) and they have the following correlations with each other.
AB = 0.5
AC = 0.2
BC = 0.3
If I now make a new asset called D, where D = 0.5*A + 0.5*B, is there a way I can calculate D's correlation with C, given the information I have?
Thanks so much in advance.
This is a bit of a finance question. To simplify things, let's say I have 3 assets (A, B, and C) and they have the following correlations with each other.
AB = 0.5
AC = 0.2
BC = 0.3
If I now make a new asset called D, where D = 0.5*A + 0.5*B, is there a way I can calculate D's correlation with C, given the information I have?
Thanks so much in advance.