How can a portfolio of weakly correlated stocks increase returns?

Yesterday I read in market news somewhere that ‘commodities (gold, silver, oil, etc.) historically have a low correlation to the stock market, so by investing in them you can smooth out and improve your returns’.

Statistically I can understand how the sum of two low (or negatively) correlated stocks can intrinsically reduce risk and volatility, but I can’t see how low-correlation is related to increased returns at all. It seems rather the opposite, that by reducing your volatility you would be *decreasing* your total returns. Am I wrong?

which online stock trading service is the best for someone who makes relatively few transactions?

i want to trade stocks online (direct invest)… which site offers the best service for someone like myself who does not make transactions very often?

Does anyone know a good stock trading site for kids?

I want to invest in the stock market but i really don’t have a lot of money to spend. Does anyone know some good, reputable websites where you can just like click on a stock and buy it?

bond prices and affect on the markets?

In the last week there has been volatility in the stock markets with people saying that bond yields are to blame.

If I’m not mistaken, yields go up when prices go down because the coupon is bigger in comparison to the price.

Also if I’m not mistaken, prices go down when people are selling things.

So if the price is going down because bonds are being sold, why isn’t this good for the market because then this money would flow into the stock market boosting prices?
Thanks…i guess my question is:

What is pushing the prices of bonds down?

What is the best online stock trading website? Why?

I’m looking to start trading some of my stock online because of the convenience. I want to know what is the best site. I want cheap trades, ease of use, and just a little advice. Let me hear what you think.

VXX – how does this work?

VXX is some sort of fund which is tied to stock market volatility.

What is it and how does it work?
I found an explanatory page:

http://www.ipathetn.com/pdf/vxx-info-sheet.pdf

A year ago it was roughly and now it is roughly .

What would have to happen for the price to double, to say ?

Wasn’t a year ago less volatile than last week?

Does anyone know where or how to get equations that model the stock market indexes over time?

I’ve been working to get a model equation that reflects expected index prices, so I can calculate deviation and predict major rises and falls. I’ve been working mainly with the Dow and S&P, but have yet to find an equation that has the degree of accuracy I’m looking for. I have attempted both compounding and logarithmic equations (and weighted for both), and though they are extremely indicative, they are based on many assumptions of where the indexes should have been starting and where they should be now. Attempts to use midpoint averages have not worked out as I’ve wished. Despite this, my models are accurate enough to prove its possibility, and show volatility very clearly and indicate crashes (in the past) very well. I’m trying to find an existing model that does what I am attempting, for ANY index, so I can apply it for the next few years (especially to indicate when it can rise again to set up long term stocks). This will save me many more hours of work! Thanks for your time

what is the best internet stock trading company?

I’m going to college and have approx 1k to my name right now, i have 6 months to make it grow and I’m thinking about putting it in the stock market due to terrible interest rates. Can anybody tell me what is the best internet stock trading site that won’t charge me high fees and does not have a minimum deposit of more than 1k required? Please help, I’ll be sure to give the best answer a 5. Thanks!

Addicted to the stock market/online trading????

I’m afraid a great friend of mine is addicted to the stock market and online stock trading. My friend sometimes risks his whole portfolio at times!! What can I do to help?? Books, programs, etc., besides gamblers annoymous…i’m already checking that out!!

Finance Research – ARCH and GARCH coefficients in Stock Returns?

++ My question is technical and academic in nature. I am currently involved in a research so I need an expert answer in simple terms ++

How can I interpret the ARCH and GARCH coefficients in analyzing financial time series (stock returns)? I know, the among so many other implications, the sum of the coefficients indicates volatility clustering and persistence. But my question is how can I infer conclusions, in simple words, from the results that can be useful for the ordinary investors, the policymakers and the capital market. What can say about the riskiness of stock market when ARCH and GARCH coefficients are statistically significant. My professor asks me to come up with clear implications that is understandable by everybody. I am not a very technical person. I need a comprehensive and non-technical answer please.