Research Tools

Analyzing correlations for diversification

Build a correlation matrix across tickers to see which holdings move together and which offset each other.

Choosing assets

Add tickers with the search box; the matrix starts with a broad default set spanning equities, bonds, gold, oil, and the dollar. Remove any chip you do not need to keep the matrix focused.

Reading the matrix

Cells are color-coded from strongly positive to strongly negative correlation. Strong positive values mean two assets tend to move together; strong negative values mean they tend to offset. The insights panel calls out the most notable relationships.

Applying it to a portfolio

Use the matrix to check whether holdings you think are diversified are actually driven by the same factor. If everything is strongly correlated, you may have one concentrated bet wearing several tickers.