A good “fable” describing the value of diversification, rebalancing and cooperation is the https://www.farmersfable.org/ showing the effects of uncertainty, diversification and essentially why it makes sense to run a multi-strategy rather than single strategy hedge fund. Of course, in this stylistic example, the farmers and the crop does not change its behavior depending on the outcome of the harvest or the behavior of your partner. Nevertheless, this is a nice illustration of why diversification and cooperation between strategies and portfolios is a positive.
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