Planetary boundary layer (PBL) Planetary boundary layer (PBL), also called atmospheric boundary layer, the region of the lower troposphere where Earthâs surface strongly influences temperature, moisture, and wind through the turbulent transfer of air mass.
Portfolio optimization tools are useful to assist planners, advisers, and clients in ways to conceptualize the asset allocation problem. But, they should not be relied upon as the primary tool for structuring an investment portfolio.
In this article, I would like to address the question of how market participants can incorporate simple correlation analysis into their investment decision making process. Simply put, diversification is an investment approach that aims to combine different investments in order to reduce the overall risk in a portfolio. The underlying driver of the diversification effect is the correlation between returns of portfolio components.