You want to match the volatility of the two assets you’re comparing. In my simulations, I leveraged both up to 30% volatility, but I might have neglected to mention that I was leveraging the AI basket.
Yeah, I didn’t go through carefully, but I definitely missed that—though arguably leveraging AI more as a hedge would make sense, since it’s only valuable in worlds where it takes off.
You want to match the volatility of the two assets you’re comparing. In my simulations, I leveraged both up to 30% volatility, but I might have neglected to mention that I was leveraging the AI basket.
Yeah, I didn’t go through carefully, but I definitely missed that—though arguably leveraging AI more as a hedge would make sense, since it’s only valuable in worlds where it takes off.