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Handy correlation tables
Old 10-04-2010, 05:17 PM   #1
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Handy correlation tables

Here's a site with handy correlation matrices for asset classes, countries, S&P sectors, and U.S. bond terms. Just choose which you want on the left. Time-frame is selectable but unfortunately doesn't go beyond two yrs in most matrices.

Asset Correlations
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Old 10-05-2010, 07:37 AM   #2
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Interesting, yes, but handy?

Seems to me an asset allocation plan should be based on long-term correlations, not short term ones or changes from month-to-month or year-to-year. Am I missing something? How might an investor's actions might be influenced by reading these tea leaves?
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Old 10-05-2010, 08:01 AM   #3
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Originally Posted by Htown Harry View Post
an asset allocation plan should be based on long-term correlations
Good point. The data needs to go back further to be really useful. The sector matrix does go back 10 yrs, but the others go back only two.

I guess "interesting" would have been a better word than "handy."
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Old 10-05-2010, 02:43 PM   #4
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Originally Posted by Onward View Post
Here's a site with handy correlation matrices for asset classes, countries, S&P sectors, and U.S. bond terms. Just choose which you want on the left. Time-frame is selectable but unfortunately doesn't go beyond two yrs in most matrices.
I spent years learning about correlations, yet the only ones I cared about were the ones that took over in 2008-2009.

I mean that term "ones" literally... back then every correlation in our portfolio was approaching 1.00.
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Old 10-05-2010, 06:38 PM   #5
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I spent years learning about correlations, yet the only ones I cared about were the ones that took over in 2008-2009.

I mean that term "ones" literally... back then every correlation in our portfolio was approaching 1.00.

Yep, things correlate most when you want them to least.


What to buy now?
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Old 10-05-2010, 08:37 PM   #6
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What to buy now?
"Buy"? I've been selling covered-call options on Berkshire Hathaway shares and depositing the proceeds in a money-market account.

Spouse and I are also considering refinancing a mortgage from 4.5% down to 4.25% or even 4%.

I guess you could buy more distressed real estate, but that's highly dependent on local conditions. I think we have enough landlording responsibilities already.

Otherwise I don't see many bargains out there...
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