The Correlation Matrix gives you a powerful way to visualize how securities move in relation to one another all in one place. Quickly identify diversification opportunities and concentration risks to make more informed investment decisions and build stronger portfolios.
Overview
Correlation Inputs
Frequently Asked Questions
Overview
We will have two types of correlations available on YCharts. You can view the correlation between Holdings or between Peer securities. Correlations are color-coded for quick interpretation: strong negative correlations appear in green, while strong positive correlations appear in red.
Holdings
The holdings correlation matrix displays the relationship between each security in a fund or portfolio. Toggle between viewing Top 10 holdings through Top 100. You can adjust the order of the holdings by selecting Edit Holdings on the right hand side of the page.
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Peer
The peer correlation matrix measures how a security moves relative to its comparable peers. You can add up to 6 comparable securities, though all peers must be the same security type. For example, a mutual fund cannot be compared against a stock. To change the comparables, select Edit Comparables in the upper right corner.
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Correlation Inputs
There are a few different inputs that can be customized within a correlation matrix.
Frequency: This will determine the frequency of the total return metric. The options are Daily, Monthly, Quarterly, or Annually.
Dates or Timeframe: Dates will allow you to choose a custom start and end date used in the matrix, while timeframe will allow you to view a specific lookback period.
Show Correlation Data: This will allow the actual correlation value to be shown within the cell. This option can be found in the upper right corner of the matrix.
Frequently Asked Questions
Is there a way to add more than 6 peer securities in a matrix?
- Not on YCharts, however we do have an Excel template where you can create this. It can be accessed in our Excel template library here. This does require the YCharts Excel Add-In to be installed on your computer.
Can I adjust the colors of the correlation matrix?
- No, the colors of the matrix are not customizable.
Can I add this correlation matrix to a PDF report?
- Yes, there is a correlation matrix module that can be added via our Report Builder tool.
Can I share a correlation matrix with colleagues?
- No, at this time correlation matrices cannot be shared in YCharts with colleagues.