Portfolio Correlation Matrix
An advanced analytical tool for portfolio managers and savvy investors to understand the relationships between different assets. Users can input the names of their assets and paste in their historical return data (e.g., daily or monthly returns) as comma-separated values. The tool then calculates and displays a color-coded correlation matrix, which visually represents how closely the assets' returns move together. A high correlation (close to 1) means they move in tandem, while a low or negative correlation (close to -1) indicates diversification benefits. This is crucial for risk management and building a well-diversified portfolio.
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