Investing in different asset classes generates diversification benefits and helps your portfolio deliver similar return for lower levels of volatility. If you spread your portfolio out over a range of assets that work in different time periods, that helps to smooth out returns over the longer term. One downside to this is that correlations are subject to change and as we have seen in recent crises, tend to go up as markets become more volatile.
LongShortSignals models cover a wide variety of assets. Correlations between these assets are shown below on a 3 month rolling basis and updated daily. The asset legend is shown under the correlation matrix and please do note that on mobile the table is showing in a condensed version, visit our website on desktop for full data. Current as of date: 2020-10-31 (show for latest, 2022-03-31, 2022-02-28, 2022-01-31, 2021-12-31, 2021-11-30, more dates). You can also choose to show all assets (including cryptocurrencies).
| Gold | Oil | AUD | EUR | JPY | EMLC | GHY | IGC | UST | EMEQ | NKY | SPX | SX5E | |
| Gold | 0.1 | 0.6 | 0.6 | 0.5 | 0.3 | 0.2 | 0.4 | 0.1 | 0.2 | -0.1 | 0.3 | -0.1 | |
| Oil | 0.1 | 0.2 | 0.2 | -0.1 | 0.4 | 0.5 | 0.3 | -0 | 0.3 | 0.1 | 0.4 | 0.4 | |
| AUD | 0.6 | 0.2 | 0.7 | 0.4 | 0.5 | 0.5 | 0.4 | -0.1 | 0.4 | -0.1 | 0.5 | 0.2 | |
| EUR | 0.6 | 0.2 | 0.7 | 0.3 | 0.5 | 0.4 | 0.4 | -0.1 | 0.3 | 0.1 | 0.2 | 0.2 | |
| JPY | 0.5 | -0.1 | 0.4 | 0.3 | 0.3 | 0.1 | 0.4 | 0.4 | 0.2 | -0.3 | -0 | -0.2 | |
| EMLC | 0.3 | 0.4 | 0.5 | 0.5 | 0.3 | 0.7 | 0.5 | -0.1 | 0.5 | -0 | 0.3 | 0.3 | |
| GHY | 0.2 | 0.5 | 0.5 | 0.4 | 0.1 | 0.7 | 0.6 | -0.1 | 0.7 | 0.3 | 0.4 | 0.6 | |
| IGC | 0.4 | 0.3 | 0.4 | 0.4 | 0.4 | 0.5 | 0.6 | 0.6 | 0.4 | 0.1 | 0.1 | 0.2 | |
| UST | 0.1 | -0 | -0.1 | -0.1 | 0.4 | -0.1 | -0.1 | 0.6 | -0 | 0 | -0.2 | -0.3 | |
| EMEQ | 0.2 | 0.3 | 0.4 | 0.3 | 0.2 | 0.5 | 0.7 | 0.4 | -0 | 0.3 | 0.4 | 0.4 | |
| NKY | -0.1 | 0.1 | -0.1 | 0.1 | -0.3 | -0 | 0.3 | 0.1 | 0 | 0.3 | -0.1 | 0.3 | |
| SPX | 0.3 | 0.4 | 0.5 | 0.2 | -0 | 0.3 | 0.4 | 0.1 | -0.2 | 0.4 | -0.1 | 0.5 | |
| SX5E | -0.1 | 0.4 | 0.2 | 0.2 | -0.2 | 0.3 | 0.6 | 0.2 | -0.3 | 0.4 | 0.3 | 0.5 |
| Ticker | Full name | Asset class |
| Gold | Gold | Commodities |
| Oil | Crude oil | Commodities |
| AUD | Australian dollar | Currencies |
| EUR | Euro | Currencies |
| JPY | Japanese yen | Currencies |
| EMLC | EM LC Bonds | Fixed income |
| GHY | Global High Yield | Fixed income |
| IGC | Inv Grade Credit | Fixed income |
| UST | US Treasury Bonds | Fixed income |
| EMEQ | EM Equity | Stocks |
| NKY | Nikkei 225 | Stocks |
| SPX | S&P500 | Stocks |
| SX5E | Euro Stoxx 50 | Stocks |