Building a portfolio

Your positions are a portfolio, whether you plan it or not

Every open position together forms a portfolio with a single combined risk. Managing them one at a time ignores how they interact — and that interaction is often where the real risk hides.

Correlation: the hidden risk

Positions that depend on the same outcome are secretly one big position. Ten positions that all rely on one team or one player are not diversified — when that single factor turns, they all lose together.

Measure exposure by underlying factor, not by the number of positions.

Diversification and position sizing

Real diversification means spreading capital across positions that do not move together, so one bad event cannot sink the whole portfolio.

Combine that with consistent position sizing — a fixed small percentage of portfolio per position — and you get a portfolio that is smoother and far harder to blow up.

Low correlation to everything else

A disciplined sports portfolio has a rare property: its returns barely depend on the stock market or the economy. That low correlation is exactly what makes it useful as an alternative alongside more traditional investments.