not completely sure what to do with this but perhaps the more knowledgeable can help
http://www.assetcorrelation.com/majors
an interesting chart [Asset correlation matrix]
- sometimesinvestor
- Posts: 1271
- Joined: Wed May 13, 2009 6:54 am
Re: an interesting chart [Asset correlation matrix]
I retitled your thread.
Basically, it's a theoretical deep-dive into discovering how diversified your portfolio is. IOW, when one asset class moves in one direction, does the other one move in the same direction (or not) and by how much?
Very simply - When the market zigs and zags, which ones zig while the other ones zag? (nisiprius said this first, but I don't remember the exact post.)
Here's a discussion thread: How to find assets which are least correlated?
Forum member pvguy has an online tool you can play with: Asset Class Correlations
Basically, it's a theoretical deep-dive into discovering how diversified your portfolio is. IOW, when one asset class moves in one direction, does the other one move in the same direction (or not) and by how much?
Very simply - When the market zigs and zags, which ones zig while the other ones zag? (nisiprius said this first, but I don't remember the exact post.)
Here's a discussion thread: How to find assets which are least correlated?
Forum member pvguy has an online tool you can play with: Asset Class Correlations
Re: an interesting chart [Asset correlation matrix]
past correlations do not guarantee future correlations.
I'm just a fan of the person I got my user name from
Re: an interesting chart [Asset correlation matrix]
Outside of the key, there're like, no "excellent diversification" cells. (Light green ones).