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Correlation Matrix

Correlation matrix is a great feature to help build high quality families. Tech supports gets a lot of questions to the tune of “what makes a good family.”

The momentum model excels in creating low volatility, low correlation strategies with a diverse family. One thing the momentum model CANT do is create a non correlated strategy using a family of funds with high correlations. ie… a strategy using a family full of S&P clones is going to look like the S&P no matter how you trade it.

Step 1

The correlation matrix uses the tickers loaded on the spreadsheet. So, start by loading a family on the the spreadsheet.

Step 2

Click the correlation matrix button at the top center to launch the correlation matrix

Step 3

Correlation Matrix Dots

  1. Names of tickers uses to derive correlation of selected cell
  2. Statistics related to ticker
  3. Correlation between ticker in row and ticker in column
  4. Click links to highlight relevant cells. >95% highlights all cells with correlation greater than 95%, etc, etc.
  5. Displays the number of tickers in the matrix and if link from #4 is clicked, # highlighted displays number of cells highlighted
  6. Diplays the start and end dates of used to calculate correlation. Change the dates on the spread sheet to update the date on the correlation matrix