Asset Class Correlation Matrix
Compare how precious metals, equities, bonds, and cash moved in educational monthly-return samples. Use the matrix to frame allocation questions, not to predict future returns.
Educational monthly-return sample for a shorter comparison window.
| Asset | Gold | Silver | S&P 500 | U.S. Bonds | Cash |
|---|---|---|---|---|---|
| Gold | 1.00 High positive relationship | 1.00 High positive relationship | -0.50 High negative relationship | 0.27 Moderate positive relationship | 0.00 Low low relationship |
| Silver | 1.00 High positive relationship | 1.00 High positive relationship | -0.49 Moderate negative relationship | 0.27 Moderate positive relationship | 0.00 Low low relationship |
| S&P 500 | -0.50 High negative relationship | -0.49 Moderate negative relationship | 1.00 High positive relationship | -0.56 High negative relationship | 0.00 Low low relationship |
| U.S. Bonds | 0.27 Moderate positive relationship | 0.27 Moderate positive relationship | -0.56 High negative relationship | 1.00 High positive relationship | 0.00 Low low relationship |
| Cash | 0.00 Low low relationship | 0.00 Low low relationship | 0.00 Low low relationship | 0.00 Low low relationship | 1.00 High positive relationship |
- Near +1.00
- Assets moved together in the sample.
- Near 0.00
- The measured relationship was weak.
- Below 0.00
- Assets tended to move in opposite directions.
Methodology
The current implementation uses bundled monthly-return samples so the matrix is available without a market-data contract. Before production reliance, replace the bundled samples with a documented historical return source and publish the date range used for each series.
FAQ
- What does correlation measure?
- Correlation measures how two return series moved together over a selected sample window. It ranges from -1 to +1.
- Can correlation change?
- Yes. Correlation changes across markets, stress periods, interest-rate regimes, and liquidity conditions. Treat it as a measured relationship, not a permanent property.