Wednesday webinar at one The limits of diversification Cross-asset correlations and portfolio risk i

The first half of 2026 highlighted the limits of diversification in multi‑asset portfolios. As inflation pressures resurfaced and monetary policy expectations tightened, correlations across asset classes intensified, reducing the effectiveness of traditional diversification when it was needed most. In this environment, assets that typically provide downside protection failed to offset losses elsewhere, while others unexpectedly provided some diversification benefits. 

In this webinar Christoph Schon, CFA examines how macro and geopolitical shocks propagated across markets, how cross‑asset correlations evolved, and what this meant for overall portfolio risk. It highlights key risk drivers and diversification effects and compares realised outcomes with what stress scenarios predicted based on historical correlation structures. 

Learning outcomes: 

• Understand how macro shocks propagated across asset classes 
• Analyse the breakdown in correlations and its impact on diversification 
• Evaluate how well stress tests based on historical correlations explain recent outcomes