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Corrolation of stocks

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Footnote
14The addition of another security to a portfolio will not always reduce portfolio risk. Total variance
will be improved only if the correlation of the new asset and the existing portfolio is less than the
ratio of the smaller standard deviation divided by the larger one.

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The expert examines correlation of stocks for a security portfolio.

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A portfolio has a σ^2 of 0.26. XXZ stock has a σ^2of 0.20; the correlation between XXZ and the portfolio is 0.79. Refer to footnote 14; will the inclusion of XXZ in the portfolio reduce its risk?
Footnote 14
The addition of another security to a portfolio will not always reduce ...

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