| 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 2 Years. |
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AC1 |
AC2 |
AC3 |
AC4 |
AC5 |
AC6 |
AC7 |
AC8 |
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Return |
SD |
| Corporate Bond |
AC1 |
1.00 |
1.00 |
0.98 |
0.89 |
-0.81 |
0.95 |
0.37 |
0.98 |
|
8.47 |
1.33 |
| CRISIL 1 Yr T-Bill |
AC2 |
1.00 |
1.00 |
0.98 |
0.89 |
-0.76 |
0.95 |
0.36 |
0.98 |
|
7.31 |
0.47 |
| Emerging Market |
AC3 |
0.98 |
0.98 |
1.00 |
0.96 |
-0.31 |
0.85 |
0.07 |
1.00 |
|
16.49 |
39.21 |
| Equity India |
AC4 |
0.89 |
0.89 |
0.96 |
1.00 |
-0.62 |
0.78 |
0.31 |
0.96 |
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15.80 |
14.64 |
| Gilt 10 years |
AC5 |
-0.81 |
-0.76 |
-0.31 |
-0.62 |
1.00 |
-0.81 |
-0.32 |
-0.30 |
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-4.90 |
8.75 |
| Gold |
AC6 |
0.95 |
0.95 |
0.85 |
0.78 |
-0.81 |
1.00 |
0.42 |
0.84 |
|
23.72 |
14.80 |
| Silver |
AC7 |
0.37 |
0.36 |
0.07 |
0.31 |
-0.32 |
0.42 |
1.00 |
0.06 |
|
17.84 |
639.44 |
| World Index |
AC8 |
0.98 |
0.98 |
1.00 |
0.96 |
-0.30 |
0.84 |
0.06 |
1.00 |
|
18.68 |
41.03 |
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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. |
25.57% |
| Portfolio Return |
12.93% |
| Start Date |
03 Apr 2023 |
| End Date |
02 Apr 2025 |
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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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