🔀Diversification
Fine wine is largely uncorrelated to mainstream and alternative assets.
Fine wine shows little correlation to other asset classes, making it a useful portfolio diversifier.
The chart below shows the correlation between the Liv-ex 1000, regarded as the broadest measure of investment-grade wine, and various other indices and markets:
Further Diversification
One facet of fine wine vs. other commodities like oil or gold, is that regional indices perform very differently to one another. The graph below highlights the opportunity for further diversification within wine as an asset class on a regional basis.
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