What is the Correlation of the Asset Classes?

with No Comments

Correlation is an important measurement used when examining the volatility of investments and the diversification of an asset allocation.

Asset classes are best defined by looking at the correlation of their returns. Less correlated asset classes represent a greater opportunity for reducing volatility and boosting returns.

These four 2015 articles take a close examination at our three appreciation asset classes of U.S. Stocks, Foreign Stocks, and Resource Stocks as well as the underlying sectors of some of those asset classes.

What Is The Correlation Of Freedom Investing?

with No Comments

Should we have a “Free Countries Asset Class” or a “Foreign Stock Asset Class?”

Do Resource Stocks Deserve Their Own Asset Class?

with No Comments

Resource stocks represent one of the most interesting collections of diverse indexes as they do not always move in sync with one another.

What Is the Correlation Between Value, Growth, Large and Small Cap Stocks?

with No Comments

The higher the correlation the greater the justification to put them in the same asset class.

What Is The Correlation Between US Stocks and Foreign Stocks?

with No Comments

Correlations over the past year have been very low, while correlations over the past 10 years have been higher.

Follow David John Marotta:

President

David John Marotta is the Founder and President of Marotta Wealth Management. He played for the State Department chess team at age 11, graduated from Stanford, taught Computer and Information Science, and still loves math and strategy games. Favorite number: e (2.7182818...)

Subscribe to our newsletter!