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Correlations term structure

Correlations between asset classes vary with investment term. Cash and bonds, for instance, are negatively correlated in the short term and positively over the very long term, and this behaviour is critical for asset allocation and captured by the EV Asset Model.

Asset correlations with Money Markets

The chart shows how the correlation of various asset classes with Money Markets varies with investment term.

 
 

Asset correlations with UK Government Bonds

The chart shows how the correlation of various asset classes with UK Government Bonds varies with investment term.

 
 

Asset correlations with UK Equity

The chart shows how the correlation of various asset classes with UK Equity varies with investment term.