Correlation & Diversification Visuals

Chart The Role of Fixed Income as a Diversifier has Changed

The investment landscape has changed and the role of fixed income as a diversifier in a portfolio has diminished....

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Chart How to Diversify Equities

A portfolio of equities can be diversified by adding strategies with low correlation between the assets....

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Chart Positive Correlations Between Stocks and Bonds During Various Inflationary Ranges

In the 2-4% inflation zone, stocks and bonds had a positive correlation coefficient 67% of the time, posing a risk for the diversification goals ...

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Chart Correlation Regimes Have Fluctuated Over the Years, Leaving Portfolios Vulnerable

Positive stock-bond correlation can negate potential diversification benefits, catching investors off-guard....

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Chart Rebuild the 60/40 with Low-Correlating Strategies

Given the wide range of economic uncertainties, investors should consider a more diversified asset allocation than 60/40....

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Chart Comparative Performance of Asset Classes

Historically, the relative performance of various asset classes has shifted from year to year. See when Managed Futures have performed....

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Chart Is a 40% Allocation to Bonds Still Justified?

Bonds might not be able to contribute to a portfolio as much as they have historically....

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Chart A Low-Correlating Sleeve May Enhance Portfolio Performance

Modernizing the traditional 60/40 portfolio to a 60/20/20 portfolio may provide the opportunity to generate positive returns, while also potentia...

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Chart Think Outside the (Style) Box for Diversification

The style box has historically been an important guide when it comes to diversifying portfolios. However, we have seen a change in the investment...

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Chart Building a Modern Portfolio

Investors now have access to a third dimension of strategies that have been used by institutions for decades. ...

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Chart Systematic Macro Strategies May Offer Increased Diversification

A characteristic of systematic macro is its ability to offer a differentiated return stream....

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Chart Using Low-Correlating Strategies to Improve Risk/Return Characteristics

Adding low-correlating strategies to the mix can enhance diversification, while improving a portfolio’s overall risk/return profile....

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