Skis and Bikes: The Untold Story of Diversification

In Diversification, Risk Parity on

Skis and Bikes

In most parts of Canada we have very distinct seasons. Some months of the year are temperate and relatively dry, while other months are cold and snowy. As a result, most Canadian towns of any size have stores that sell skis and bikes. Of course, they don’t inventory both skis and bikes at the same time. Rather, in the spring they sell off all their ski related inventory and set out their bike gear, and in the fall they clear out the bike gear to make room for skis. Pretty creative, right? Let’s observe a simplified example of bike sales and ski sales over several years…

Read the full article at the InvestResolve Blog.