Do two assets move together or against each other? It answers: does this protect me if that one collapses? Sometimes mislabeled as the linkage matrix; the platform's term is Correlation Matrix.
What this table is
A correlation matrix (Correlation Matrix) is a grid showing how strongly pairs of assets are correlated: who moves with whom, who moves against whom, and who has no relation to anyone. Values run from +1 (twins) to −1 (exact opposites), passing through zero (strangers).
Why it is the real diversification check
A portfolio of ten stocks with correlations above 0.85 is in effect one bet repeated ten times. Cosmetic diversification is more dangerous than openly stated concentration because it suggests a safety that is not there. The table shows it at a glance: a tight red block means a portfolio with no real diversification.
Correlations move
Its most dangerous property is that it is not constant. In a panic, the correlations of all risky assets converge toward one, and the only refuge then is what was already negatively correlated. So the table is read over moving windows, not as an eternal truth.
Hypothetical example
A trader holds chip, cloud and semiconductor stocks as "diversification". The table shows them as one block with correlations of 0.9, so a sector decline hits them all. Adding an asset whose correlation to the block is near zero does more for diversification than five more similar stocks.
Common mistake
Confusing correlation with causation, or expecting it to last: two assets correlated for a year may part ways when the regime shifts. The table describes the recent past and is refreshed. It is not a guarantee.
Why it is read as moving
A single historical correlation hides that relationships change with the regime: two assets that moved in opposite directions for years can fuse in one week of panic. The value is in watching the shift. Correlations rising toward one is a general stress signal that comes before liquidation.
Where to see it on the platform
The Correlation Matrix page draws the matrix as a heat map and keeps it updated, with the rolling correlation of each pair over time.
The correlation matrix shows the moving windows, so you can see the drift before it costs you.
