How to use correlation metrics and heatmap
compare the correlations of all the portfolios to five major asset classes



Correlation metrics and heatmap

Overview 
Compare the correlations of all the portfolios to five major asset classes. The Correlation Heatmap uses colors to indicate the degree of correlation between each portfolio and five major asset classes: 
  • Global equities
  • S&P 500
  • Commodities
  • U.S. Bonds
  • Gold
The correlation heatmap is located at the right side of the VizMetrics Comparison page.

How to make comparisons using the color-coding
For each portfolio, the correlation is shown in five boxes. Each box is color-coded to show the strength of the correlation.

How to make comparisons using the correlation metrics
For each portfolio, five numbers are shown, 
The five numbers shown for each portfolio are the coefficients of correlation ("r") for each portfolio compared to five popular asset classes: global equities (ACWI), S&P 500 (SPY), commodities (DBC), US bonds (BND), and gold (GLD). 

Values of "r" range from -1.00 to 1.00, but to save space we have multiplied "r" by 100 to display on the report. So instead of 0.96, we display "96." This is indicated in the column heading as "r*100"

"r*100" values range from -100 to +100.  Positive numbers indicate positive correlations, and a negative number indicates inverse correlation.