Can you calculate a Correlation matrix for a Stock Portfolio and Benchmarks?
You first choose a Portfolio of securities which include ETF benchmarks and then calculate a correlation matrix. The correlation matrix will show the relationship between each stock and the correlation of stock against the ETF benchmarks. Here is an example from ZOONOVA
First the Portfolio below.
Now take the Portfolio and include the following Benchmarks.
Now calculate a Correlation matrix of the combined Benchmarks and the Portfolio. This shows the correlation of positions to other positions and the Benchmarks.
Cheers.
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