is negative correlation better than positive correlation 
for some investors negative correlation is better than positive correlation this means that investors are exposed to less risk have the chance to invest in different types of securities and often experience less portfolio volatility for others negative correlation means hedging their investment which minimizes potential gains the bottom linea negative correlation is an event of two variables moving in the opposite direction as one variable increases in value the other decreases this relationship is measured by the correlation coefficient and the concept of negative correlation is central to portfolio diversification theory for most investors negative correlation across portfolio assets is favorable 