Maurizio Priamo @Maurizio_P: "SUBJETC: Low Overlap, High Diversification:..."

Italy

SUBJETC: Low Overlap, High Diversification: Why Combining Strategies Matters More Than You Think --> me vs @triangulacapital I ran an interesting test today using a new tool shared by @marcocecili, and the results gave me a very clear insight into portfolio overlap and true diversification. I compared my portfolio with @triangulacapital currently one of the most copied Popular Investors on the platform, and what emerged was particularly interesting. The adjusted weighted overlap between our portfolios is just 3.3%, with only one shared position out of nearly 50 holdings. This means that despite operating in the same market environment, the two strategies are almost completely independent. And in my opinion, this is the real takeaway. Many investors today tend to copy multiple traders believing they are diversifying, without realizing that in many cases they are simply replicating the same positions over and over again, increasing concentration risk instead of reducing it. But this is not always the case. Sometimes, combining two strategies can actually improve diversification. And this is exactly what I see here. While there is a natural exposure to major market drivers, the overall portfolio construction follows very different approaches. In practical terms, this means that combining the two could create a more balanced exposure across sectors, themes, and risk profiles. Looking ahead, I believe this kind of analysis will become increasingly important. Not just to compare performance, but to better understand how capital is truly allocated and how different strategies interact with each other. Because at the end of the day, true diversification is not about how many positions you hold. It’s about how different those positions really are. And often, the value is not in choosing one strategy over another. But in understanding which combinations actually work. thank you @marcocecili Maurizio $NSDQ100 $SPX500 $NVDA (NVIDIA Corporation) $MSFT (Microsoft) $AMZN (Amazon.com Inc) $GOOGL (Alphabet Inc Class A)

Not investment advice. The author may have financial interests in the mentioned instruments.