Schuler Capital Management LLC
  • Approach
    • What Makes Us Different
    • How We Work With Clients
    • About Us
  • Risk Model
    • Safeguard 1st Risk Model
    • Why Does It Work?
    • Risk Management vs Market Timing
    • Key Takeaways
    • What Is Safeguard 1st Telling Us Now? >
      • Current Safeguard 1st Signals
  • Reasons Why
    • Buy & Hold May Not Always Be Best
    • The Achilles Heel of the 60/40 Portfolio
    • Is Your Portfolio Really Diversified?
    • Cash Is Not Trash
    • Fees Matter
    • What To Know About Track Records
  • Approach
    • What Makes Us Different
    • How We Work With Clients
    • About Us
  • Risk Model
    • Safeguard 1st Risk Model
    • Why Does It Work?
    • Risk Management vs Market Timing
    • Key Takeaways
    • What Is Safeguard 1st Telling Us Now? >
      • Current Safeguard 1st Signals
  • Reasons Why
    • Buy & Hold May Not Always Be Best
    • The Achilles Heel of the 60/40 Portfolio
    • Is Your Portfolio Really Diversified?
    • Cash Is Not Trash
    • Fees Matter
    • What To Know About Track Records
​Correlation
​

Asset correlation is a measurement of the relationship between two or more assets and their dependency.  This makes it an important part of portfolio asset allocation where the goal is to combine different asset types that don’t move up and down together to reduce overall portfolio volatility and risk.  The correlation measurement (R) is expressed as a number between +1 and -1.  A zero correlation indicates there is no relationship between the assets.   A +1.00 indicates an absolute positive correlation (they always move together in the same direction).  A -1.00 indicates an absolute negative correlation (they always move together in opposite directions of each other).
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