[Investment jokes] What are risk hedging and portfolio returns? A simple old lady, carrying a backpack into the bank, needs to deposit 500,000 US dollars, and the president receives her in the VIP room. CEO: Your life savings? Old lady: where? I gamble for a living, and I always win when I gamble. I just won! CEO: "Impossible!" Old lady: "Then let's bet. There will be a triangular birthmark on your butt tomorrow morning. The bet is only 500,000!" The CEO was hesitant, looked at a bag of cash, and decided should bet. After the old lady left, the president went home and checked in the mirror several times. There was no birthmark, and he went to the VIP room until the appointment time the next day. The old lady arrived early, and a well-dressed lawyer stood beside her. Old lady: Today the lawyer testified to check your ass. President: "There is really no birthmark, let alone a triangle." Then he took off his pants and asked them to check his butt... The old lady looked at it: "Sure enough, I lost." At this time, the lawyer's face was livid, and he kept banging his head against the wall. The president was shocked. Lawyer: "She just bet me 1.5 million that you would take off your pants and let her see your ass!" This joke is actually called "risk hedging" in the financial circle. It plays an important role in the investment portfolio. When making investments, we cannot only focus on the performance of a single asset and ignore the correlation between assets. Sometimes the loss of one asset will in turn lead to the profit of another asset. Looking at the overall situation, The entire portfolio is profitable. Always remember that the income of the portfolio is our ultimate goal, consider the correlation of assets, and do a good job of hedging. cognition