Hedge Fund Portfolio Density and Turnover

Hedge Fund Portfolio Density and Turnover Hedge fund portfolio density has steadly increased, and fund turnover has declined over the past decade. High concentration risk can lead to high losses and affect the financial system. Picture source: Goldman Sachs

Correlation Between S&P 500 Index and MSCI EAFE Index

Correlation Between S&P 500 Index and MSCI EAFE Index Since 1997, the high correlation between U.S. and international equity markets suggests that the MSCI EAFE may only offer a slight risk/return benefit as a complement to a U.S. equity portfolio. Picture source: First Eagle Investment Management, LLC

VIX and MOVE Correlation

VIX and MOVE Correlation Periods of high correlation between VIX and MOVE are not good for balanced portfolios, because diversification is hard to find. Picture source: Arbor Research & Trading LLC

Annual Performance of Gold and the S&P 500 since 1980

Annual Performance of Gold and the S&P 500 since 1980 One of the advantages of gold is that it is uncorrelated to the U.S. stock market and provides diversification in a portfolio. Picture source: The Wall Street Journal

The Value of Diversification

The Value of Diversification This chart shows that a 60/40 portfolio has slightly outperformed the S&P 500 since 2018. Picture source: Fidelity Investments

Correlation Between S&P 500 and U.S. Treasuries

Correlation Between S&P 500 and U.S. Treasuries This chart shows the correlation between stocks and bonds, which could affect a balanced 60/40 portfolio. Picture source: Arbor Research & Trading LLC