| Your Current Location : Correlation : Asset Class Correlation |
| |
Asset Class Correlation Matrix |
|
| |
| The following table shows return correlations between various Asset Classes over the past 6 Months. |
| |
|
|
AC1 |
AC2 |
AC3 |
AC4 |
AC5 |
AC6 |
AC7 |
AC8 |
|
Return |
SD |
| Corporate Bond |
AC1 |
1.00 |
0.94 |
0.00 |
-0.11 |
-0.84 |
0.87 |
0.83 |
0.00 |
|
2.22 |
1.41 |
| CRISIL 1 Yr T-Bill |
AC2 |
0.94 |
1.00 |
0.00 |
-0.38 |
-0.68 |
0.95 |
0.89 |
0.00 |
|
1.58 |
0.34 |
| Emerging Market |
AC3 |
0.00 |
0.00 |
1.00 |
0.88 |
-0.82 |
0.68 |
0.78 |
1.00 |
|
7.28 |
26.53 |
| Equity India |
AC4 |
-0.11 |
-0.38 |
0.88 |
1.00 |
-0.85 |
0.71 |
0.62 |
0.85 |
|
7.81 |
22.57 |
| Gilt 10 years |
AC5 |
-0.84 |
-0.68 |
-0.82 |
-0.85 |
1.00 |
-0.90 |
-0.61 |
-0.76 |
|
-8.84 |
10.04 |
| Gold |
AC6 |
0.87 |
0.95 |
0.68 |
0.71 |
-0.90 |
1.00 |
0.73 |
0.61 |
|
26.19 |
20.23 |
| Silver |
AC7 |
0.83 |
0.89 |
0.78 |
0.62 |
-0.61 |
0.73 |
1.00 |
0.73 |
|
22.37 |
27.69 |
| World Index |
AC8 |
0.00 |
0.00 |
1.00 |
0.85 |
-0.76 |
0.61 |
0.73 |
1.00 |
|
7.28 |
23.95 |
|
| |
| |
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.
|
| |
Intra-Portfolio Diversification 
Diversification can be quantified as the intra-portfolio correlation. This indicate Percent of diversifiable risk eliminated. |
34.21% |
| Portfolio Return |
8.24% |
| Start Date |
06 Jan 2025 |
| End Date |
04 Jul 2025 |
|
| |
| Each cell represents the correlation between the two corresponding assets. |
| |
| 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 |
|
| |
|
|
| |
|
|
|
|
