Asset Correlation Matrix
Analyze correlations between different assets to optimize portfolio diversification. This tool helps you visualize how various investments move in relation to each other, allowing you to build a more resilient portfolio with reduced volatility.
Asset Returns Data
Add New Asset
Understanding Correlation
Correlation measures how two assets move in relation to each other, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).
- Strong Positive (0.7 to 1.0): Assets move in the same direction
- Moderate Positive (0.3 to 0.7): Assets tend to move in the same direction
- Low/No Correlation (-0.3 to 0.3): Little relationship between assets
- Moderate Negative (-0.7 to -0.3): Assets tend to move in opposite directions
- Strong Negative (-1.0 to -0.7): Assets move in opposite directions
Low or negative correlations between assets can help reduce portfolio volatility.
Correlation Analysis
Add at least two assets to generate a correlation matrix.
This calculator uses historical returns to calculate correlations. Past correlations are not guaranteed to persist in the future. Correlation is just one measure of relationship between assets and should be used alongside other risk metrics. This tool is for educational purposes only and does not constitute investment advice.