An incisive and, in my experience, a unique method of finding poorly correlated securities that still retain valuable characteristics. I compliment you on the detail and illustrations used. It would have been valuable to show a historical example of the technique and how it might have worked in prior years over some reasonable period. My minor contribution to this discussion is to raise the issue or upside and downside returns. It is valuable to look at the relative returns for correlated vs. uncorrrelated assets but I think it might be useful to look at the return in uptrending markets compared to the returns in falling markets, an upside/downside comparison. Maybe it is not much different than the one you made but it might be. Also more emphasis should be placed on comparisons over several time frames, in different trending markets and with an examination of the variance exhibited in these results.