[Verse 1] Sarah put her money in just one stock alone When that company fell down, she lost her home But her friend Mike spread his cash around Different sectors, different ground When one went down, others stayed strong That's diversification all along [Chorus] Don't put all eggs in one basket, that's the golden rule Mix your investments up, use the correlation tool When assets move apart, risk goes down the chart Diversify your way, to a safer portfolio day Spread it out, spread it out, that's what it's all about [Verse 2] Correlation tells the tale of how investments dance Positive means they move together, taking the same chance Negative correlation is the key you want to find When one goes up, the other's down, now that's peace of mind Zero correlation means they move their separate ways Perfect for reducing risk in volatile market days [Chorus] Don't put all eggs in one basket, that's the golden rule Mix your investments up, use the correlation tool When assets move apart, risk goes down the chart Diversify your way, to a safer portfolio day Spread it out, spread it out, that's what it's all about [Bridge] Stocks and bonds, foreign lands Real estate and commodities in your hands Industry sectors, company size Geographic regions, that's how wealth multiplies The math is clear, when you combine Uncorrelated assets, your risk declines [Verse 3] Ten percent in tech, fifteen in healthcare stocks Some emerging markets, some solid blue-chip rocks Government bonds for stability's sake REITs for real estate, whatever it may take The magic happens when you blend them all Individual risk begins to fall [Chorus] Don't put all eggs in one basket, that's the golden rule Mix your investments up, use the correlation tool When assets move apart, risk goes down the chart Diversify your way, to a safer portfolio day Spread it out, spread it out, that's what it's all about [Outro] Portfolio theory proved it's true Diversification works for me and you Lower risk with same return That's the lesson we all must learn
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