Why Use a Correlation Matrix?
True diversification isn't just about owning many stocks—it's about owning stocks that don't move in sync.
If all your assets have a correlation of 1.0, they will all crash at the same time. A correlation calculator helps you find assets with low or negative correlation to hedge your risk.
Launch Interactive Calculator →
What is Correlation?
Correlation is a number between -1 and +1.
+1.0: Assets move perfectly in sync (High Risk).
0.0: Assets are unrelated (Good Diversification).
-1.0: Assets move in opposite directions (Hedge).
Common Correlation Traps
Tech & Crypto: Often have high correlation (>0.6).
Energy & Airlines: Often have negative correlation.
Stocks & Bonds: Historically low correlation, but
this can change during inflation spikes.
How Guardfolio Helps
Static calculators are useful, but markets change daily. Guardfolio provides a live, dynamic correlation matrix for your entire portfolio.
We alert you when correlations "break"—for example, if your safe bonds suddenly start dropping alongside your stocks (a correlation spike), we notify you immediately so you can adjust your strategy.