an interesting chart [Asset correlation matrix]

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
Topic Author
sometimesinvestor
Posts: 1271
Joined: Wed May 13, 2009 6:54 am

an interesting chart [Asset correlation matrix]

Post by sometimesinvestor »

not completely sure what to do with this but perhaps the more knowledgeable can help

http://www.assetcorrelation.com/majors
User avatar
LadyGeek
Site Admin
Posts: 95686
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: an interesting chart [Asset correlation matrix]

Post by LadyGeek »

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
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Day9
Posts: 1000
Joined: Mon Jun 11, 2012 6:22 pm

Re: an interesting chart [Asset correlation matrix]

Post by Day9 »

past correlations do not guarantee future correlations.
I'm just a fan of the person I got my user name from
linenfort
Posts: 2241
Joined: Sat Sep 22, 2007 9:22 am
Location: #96151D

Re: an interesting chart [Asset correlation matrix]

Post by linenfort »

Outside of the key, there're like, no "excellent diversification" cells. (Light green ones).
Post Reply