Asset Correlations

See how your holdings move together. A correlation near +1 means assets rise and fall in step; near 0 means they're largely independent; below 0 means they tend to move opposite — the basis of diversification.

Educational use only — not investment advice

This tool is for educational and informational purposes only and does not provide financial, investment, tax, legal, or accounting advice. Results are hypothetical and based on historical data and assumptions that may be inaccurate. Past performance does not guarantee future results. Consult a licensed professional before making investment decisions.

Asset AnalyticsBeginner

What is the Asset Correlations?

Build a correlation matrix, a diversification score, and spot redundant or diversifying holdings.

Diversification depends on how assets move relative to one another. The Asset Correlations tool computes a full correlation matrix from daily, weekly, or monthly returns, highlights the most- and least-correlated pairs, flags holdings that move almost identically (and may add little diversification), and summarizes the basket with a single diversification score.

How to use it

  1. 1Enter two or more tickers you want to compare (e.g. VTI, BND, GLD, VNQ).
  2. 2Choose a date range, a return frequency (daily, weekly, or monthly), and a rolling window.
  3. 3Run it to get a correlation heatmap, a single diversification score, the most- and least-correlated pairs, and warnings about holdings that move almost identically.

What you'll get

  • Correlation matrix heatmap
  • Diversification score
  • Most/least correlated pairs
  • Redundancy warnings
  • Rolling correlation for any pair
New here? See it in action
Stocks, bonds, gold & REITs Compare VTI, BND, GLD, and VNQ to see which truly diversify each other — gold's near-zero correlation to stocks stands out.
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Tickers

How the Asset Correlations works

Correlations use Pearson's coefficient on aligned periodic returns over the overlapping history of all tickers. The diversification score is one minus the average pairwise correlation.

Asset Correlations — Informed Portfolio