| Your Current Location : Correlation : Asset Class Correlation |
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Asset Class Correlation Matrix |
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| The following table shows return correlations between various Asset Classes over the past 6 Months. |
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AC1 |
AC2 |
AC3 |
AC4 |
AC5 |
AC6 |
AC7 |
AC8 |
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Return |
SD |
| Corporate Bond |
AC1 |
1.00 |
0.99 |
0.84 |
0.59 |
-0.70 |
0.66 |
0.18 |
0.85 |
|
4.07 |
1.08 |
| CRISIL 1 Yr T-Bill |
AC2 |
0.99 |
1.00 |
0.82 |
0.53 |
-0.66 |
0.68 |
0.20 |
0.83 |
|
3.69 |
0.30 |
| Emerging Market |
AC3 |
0.84 |
0.82 |
1.00 |
0.74 |
-0.94 |
0.99 |
0.85 |
1.00 |
|
9.49 |
75.31 |
| Equity India |
AC4 |
0.59 |
0.53 |
0.74 |
1.00 |
-0.57 |
0.11 |
-0.20 |
0.75 |
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4.89 |
18.44 |
| Gilt 10 years |
AC5 |
-0.70 |
-0.66 |
-0.94 |
-0.57 |
1.00 |
-0.58 |
-0.26 |
-0.94 |
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-0.57 |
10.51 |
| Gold |
AC6 |
0.66 |
0.68 |
0.99 |
0.11 |
-0.58 |
1.00 |
0.83 |
0.99 |
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4.46 |
18.09 |
| Silver |
AC7 |
0.18 |
0.20 |
0.85 |
-0.20 |
-0.26 |
0.83 |
1.00 |
0.85 |
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-2.94 |
34.07 |
| World Index |
AC8 |
0.85 |
0.83 |
1.00 |
0.75 |
-0.94 |
0.99 |
0.85 |
1.00 |
|
9.76 |
74.33 |
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Note :
- Returns upto 1 year are absolute and over 1 year are compounded and annualised.
- Standard Deviations are calculated on daily return basis for the given period and are annualised.
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Intra-Portfolio Diversification 
Diversification can be quantified as the intra-portfolio correlation. This indicate Percent of diversifiable risk eliminated. |
29.00% |
| Portfolio Return |
4.11% |
| Start Date |
27 May 2024 |
| End Date |
26 Nov 2024 |
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| Each cell represents the correlation between the two corresponding assets. |
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| Cell Color |
Description |
Diversification Benefit |
| -1.00 to -0.40 |
Asset pair with negative correlation |
Excellent Diversification |
| -0.40 to 0.00 |
Asset pair with slight negative correlation |
Good Diversification |
| 0.00 to 0.60 |
Asset pair with mild positive correlation |
Moderate Diversification |
| 0.60 to 1.00 |
Asset pair with strong positive correlation |
Poor Diversification |
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