These terms help you understand what you see on the charts:

Page Layout

The page has these main sections from top to bottom:

Interactive Elements

Here's how to interact with the visualizations:

• MDS Plot Interactions

  Hover over any dot to see its distance from the selected asset (shown at the bottom of the MDS chart) and update the correlation value displayed above the chart. Click a dot to select that asset.

• Heatmap Interactions

  Hover over any column to see correlations for that month. Click a column to "freeze" the MDS plot on that month.

• Date Range Selector

  Drag the handles at the bottom of the time series to zoom into a specific period. The heatmap will update to show only that range. Hover over or click a column to update the MDS plot.

• Header Information

  The text above the charts shows: the selected month, selected asset name, its correlation value, and the average correlation across all assets.

Why Correlations Matter

Understanding correlation patterns helps with investment decisions:

• Diversification Benefits

  When correlations are low (lighter colors), assets move independently—good for diversification. When correlations spike (dark red), all assets fall together.

• Crisis Detection

  During market stress, correlations typically increase sharply. Watch the heatmap for periods when all rows turn dark red simultaneously.

• Historical Patterns

  Scroll through the time series to see how correlations behaved during past events (2008, 2011, 2020). This shows how assets might behave in future stress.

Exploring the MDS Plot

The left side of the chart shows assets positioned by their correlations:

• Click Any Dot

  Clicking a dot selects that asset. The heatmap will highlight its row, and the header will show its name and current correlation value.

• Hover for Details

  Move your mouse over any dot to see a tooltip with the asset name, correlation value, and date.

• Distance = Relationship

  Assets close together have high correlation (move together). Assets far apart have low correlation (move independently).

Exploring the Time Series

• Hover Over Dates

  Move your mouse horizontally across the heatmap to see how correlations changed over time. The MDS plot updates in real-time.

• Click to Select a Date

  Click any column to 'freeze' the visualization on that date. The MDS plot will show exactly where each asset was positioned.

• Zoom with Date Range

  Drag the handles at the bottom of the time series to focus on a specific period. This is useful for analyzing particular market events.

What the Charts Show

Each visualization on this page represents correlation calculations from daily returns data.

Reading the Visualizations

• MDS Plot Interpretation

  Assets are positioned so that correlated assets cluster together. During calm markets, assets spread out. During crises, they often collapse toward the center.

• Heatmap Interpretation

  Each vertical column is one month. Dark red indicates high correlation across all assets. Light colors indicate low correlation (diversification working).

• Average Correlation Line

  The black line on the time series shows the average correlation across all assets in the group. Watch it rise during stress and fall during calm periods.

Data Coverage

Each dataset includes assets with sufficient trading history for reliable correlation estimation. The date range shown covers the period where all assets in the group have overlapping data.

Using the Page

How do I switch between different asset groups?

Use the dropdown at the top left of the page. It shows the current dataset name (like 'Equity International'). Click it to see all available groups and select a different one.

How do I see correlations for a specific date?

Hover over the heatmap to explore different dates—the MDS plot updates in real-time. Click any column to 'freeze' the display on that date so you can examine the asset positions.

How do I zoom into a specific time period?

You can adjust the date range in several ways: drag the handles at the bottom of the time series chart, use the preset buttons (1Y, 2Y, etc.) for common ranges, or use the date pickers to select a custom range. Note that the view is limited to four years at a time maximum.

What's the difference between the Welcome page and the Analysis page?

The Welcome page shows correlations for an entire asset group at once, letting you see patterns across all assets and through time. The Analysis page focuses on specific asset pairs, showing detailed correlation time series for the pairs you select. Start here to explore a dataset, then use the Analysis page when you want to examine particular relationships in depth.

Understanding What You See

Why do all the dots cluster together sometimes?

When assets are highly correlated (moving together), the MDS plot positions them close to each other. During crises, this often means all dots collapse toward the center. During calm periods with lower correlations, dots spread out.

What do the dark red bands in the heatmap mean?

Dark red indicates high correlation—assets are moving together. Wide dark bands spanning many rows indicate periods when all assets became highly correlated, typically during market stress like 2008 or 2020.

What do light colors and low correlations mean?

Light colors indicate low correlations, meaning assets are moving more independently. This is favorable for diversification since losses in one asset are less likely to coincide with losses in another. The key insight is relative: lighter areas show periods or pairs with better diversification potential compared to darker areas.

How do I read the color scale?

The heatmap uses a color gradient. Light colors (green or pale yellow) indicate correlations closer to zero. Dark red indicates correlations approaching 1.0 (perfect positive correlation). Though rare, dark blue indicates correlations approaching -1.0 (perfect negative correlation). A color gradient legend below the correlation matrix shows the exact mapping from colors to correlation values. When you hover over or click on an asset, the header displays the average pairwise correlation of that asset with all other assets in the dataset.

Frequently Asked Questions

Common questions about the correlation visualizations:

What does the black line on the time series represent?

The black line shows the average correlation across all assets in the current dataset. When it rises, correlations are generally increasing (assets moving together). When it falls, correlations are decreasing (more independent movement).

Why are some asset groups not available?

Correlation analysis requires assets with overlapping trading history. Some asset combinations don't have enough shared data for reliable analysis.

Why do correlations spike during crises?

During market stress, common factors (fear, liquidity needs, forced selling) dominate all assets. Even normally independent assets start moving together as everyone sells simultaneously. This is visible as dark red bands and clustered dots.

Can I download the correlation data?

Downloads are not available on this page. To download correlation data, go to the Correlation Analysis page where you can select specific asset pairs and export them as CSV files. You must be logged in to download.

What does 'correlation' mean exactly?

Correlation measures how assets move together. +1 means perfect synchronized movement, -1 means perfect opposite movement, and 0 means no relationship. Most assets have positive correlations (0.2 to 0.8) that increase during crises. For a more thorough treatment of correlation and its applications, see our correlation documentation page.

How can I compare correlation behavior across different time periods?

Use the date range selector to isolate one period (e.g., 2008 crisis), note the MDS positions and heatmap patterns, then adjust the range to another period (e.g., 2020 crisis) and compare. This reveals whether different crises produced similar or different correlation structures.

How do I find assets that behave differently from the group?

In the MDS plot, look for dots that stay far from the main cluster, especially during periods when other assets bunch together. These outliers may offer diversification benefits. Click on them to see their correlation values over time.

Quick Start: First 60 Seconds

• 1. Select a Dataset

  Use the dropdown at top left to choose an asset group you're interested in (e.g., Equity International, Bond Markets).

• 2. Explore the MDS Plot

  Hover over dots to see asset names. Notice which assets cluster together (high correlation) and which are spread apart (low correlation).

• 3. Scan the Heatmap

  Look for dark red bands—those are periods of high correlation (market stress). Light colors indicate calm periods with better diversification.

• 4. Click a Crisis Date

  Click on a dark band in the heatmap (like 2008 or 2020) to see how the MDS plot looked during that crisis.

What You Can Do Next

• Compare Different Asset Groups

  Switch between datasets to see how correlations differ across equity regions, bond markets, or other asset classes.

• Identify Historical Patterns

  Use the date range controls to zoom into specific events. Compare correlation behavior during different crises.

• Assess Portfolio Diversification

  Look for asset groups with lighter colors (low correlations). If correlations are consistently high across a group, those assets provide limited diversification benefits.

• Stress Test Your Holdings

  Click on crisis dates (2008, 2020) to see which assets maintained low correlations during stress. These may offer better protection in future downturns.

• Download for Your Analysis

  Go to the Correlation Analysis page to download correlation data as CSV files for use in your own models or reports.

• Go Deeper with Analysis Pages

  Use the search bar to find individual securities. The Analysis pages let you see detailed correlation data for specific asset pairs.