Why sleeves should not move together

Correlation measures how two return series tend to move together. In a multi-strategy book, high correlation between sleeves means they often win and lose as a pack. That reduces the value of “diversification.”

The idea

If every sleeve is a variant of the same equity trend bet, the book is one idea wearing different labels. Useful sleeves usually lean on different drivers: earnings drift vs short-vol vs FX macro vs crypto breakout, and so on.

Correlation is not fixed. In crises, many risk assets move together. Research filters (including correlation checks) try to keep the published mix from being a single hidden bet, but they do not eliminate regime shifts.

How we talk about it here

• Strategies describes each sleeve’s job in plain English.
• Live Paper shows the live paper mix and fills.
• Backtests shows how the target mix behaved historically, including drawdowns when things moved together.

What it is not

• Not a promise of zero correlation.
• Not a reason to ignore max drawdown (see drawdown).
• Not live capital. This site is paper by default.

Bottom line

Uncorrelated sleeves are a design goal, not a guarantee. Judge the book by how it behaves when regimes change, not by a single quiet year. Soft interest only via Connect.