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Old 03-31-2017, 12:22 PM
 
1,354 posts, read 796,665 times
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Quote:
Originally Posted by lchoro View Post
Correlation Matrix - CEFs ETFs REITs

It's only been in the last two years that bonds have become less correlated with stocks. Anything that looks at correlation is looking at the recent past, just as before 2010 they were less correlated.

what's causing higher correlation between stocks, bonds in 2014
However, correlation is a measure of linear relationship only.
There could be other forms of relations, e.g parabolic, logarithmic, etc.
Any research in this direction?
Also too: negative correlation could be a positive feature in balancing equities.
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Old 03-31-2017, 12:30 PM
 
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all that counts is on those big up or down days if you have nothing else moving powerfully in the opposite direction than you may not be diversified enough.
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Old 03-31-2017, 01:51 PM
 
1,354 posts, read 796,665 times
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Originally Posted by mathjak107 View Post
all that counts is on those big up or down days if you have nothing else moving powerfully in the opposite direction than you may not be diversified enough.
I have composed a small Butterfly portfolio. Will watch it closely...
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Old 03-31-2017, 01:52 PM
 
107,125 posts, read 109,484,448 times
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so far rising rates and all it is doing just fine .
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