Handy correlation tables

[Onward]

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

 

[Htown Harry]

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?

 

[Onward]

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."

 

[Nords]

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.

 

[yakers]

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?

 

[Nords]

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...