The optimally constructed portfolio consists of elements with as little correlation – positive or negative – as possible to each other. A lack of correlation among the portfolio elements generally reduces its overall risk and enhances its returns.

XT99 is virtually uncorrelated with the stock market at -.213, the bond market at .202 and the commodity markets as measured by the Goldman Sachs Commodity Index (GSCI) at .385.

Consequently, the addition of XT99 to a portfolio containing any or all of these types of assets provides an excellent diversification, thereby potentially reducing risk and increasing returns.