[Verse 1]
Sarah puts her savings in one tech stock alone
When the market crashes down, her dreams are overthrown
But Michael spreads his wealth across ten different fields
Banking, healthcare, energy - diversified yields
[Chorus]
Don't stack your golden eggs in just one fragile nest
Correlation matters when you're building wealth that lasts
Negative correlation keeps your portfolio blessed
When one investment falls, another passes the test
Diversify, diversify, spread the risk around
Mathematical magic keeps your money safe and sound
[Verse 2]
When oil prices tumble, airline stocks can soar
As fuel costs drop lower, profits climb much more
This inverse relationship protects your growing fund
While others lose their fortunes, yours stays in the sun
[Chorus]
Don't stack your golden eggs in just one fragile nest
Correlation matters when you're building wealth that lasts
Negative correlation keeps your portfolio blessed
When one investment falls, another passes the test
Diversify, diversify, spread the risk around
Mathematical magic keeps your money safe and sound
[Bridge]
Bonds and stocks together, international and home
Real estate and commodities, let your money roam
Standard deviation shrinks when assets move apart
Risk reduction through selection - it's financial art
[Verse 3]
Perfect correlation means they move in perfect time
Negative one means opposite - when yours falls, mine climbs
Zero correlation shows no pattern in their dance
Independent movements give your portfolio a chance
[Chorus]
Don't stack your golden eggs in just one fragile nest
Correlation matters when you're building wealth that lasts
Negative correlation keeps your portfolio blessed
When one investment falls, another passes the test
Diversify, diversify, spread the risk around
Mathematical magic keeps your money safe and sound
[Outro]
Modern portfolio theory proves what grandma knew
Scatter all your treasures and watch your wealth break through