Portfolio Correlation Matrix Builder

Compute pairwise asset correlations, visualize as a color-coded heatmap, and score your portfolio's true diversification.

Feb 23, 2026, Eric

The Core Idea

Diversification only works when your assets are not correlated. Two assets with a correlation above 0.8 are essentially the same position — holding both increases your exposure without reducing your risk. This tool computes pairwise Pearson correlations for any set of assets and quantifies how much genuine diversification your portfolio actually contains.

Data

Toggle assets on/off to explore subsets:

Upload CSVCSV: first row = ticker headers, each column = one asset's daily returns

Correlation Heatmap

Red = highly positive correlation. Blue = negative. Amber border = |corr| > 0.8. Hover for details.

	SPY	QQQ	IWM	GLD	TLT	BTC	OIL	INTL
SPY	—	0.92	0.84	0.06	-0.38	0.24	0.46	0.68
QQQ	0.92	—	0.79	0.03	-0.31	0.23	0.35	0.65
IWM	0.84	0.79	—	0.03	-0.32	0.23	0.47	0.68
GLD	0.06	0.03	0.03	—	0.22	0.11	0.14	0.07
TLT	-0.38	-0.31	-0.32	0.22	—	-0.09	-0.19	-0.25
BTC	0.24	0.23	0.23	0.11	-0.09	—	0.13	0.23
OIL	0.46	0.35	0.47	0.14	-0.19	0.13	—	0.45
INTL	0.68	0.65	0.68	0.07	-0.25	0.23	0.45	—

Diversification Score

Moderately diversified

Avg Pairwise Correlation

0.231

High-Corr Pairs (|r| > 0.8)

Worst (Highest) Correlated Pair

SPY ↔ QQQ: 0.915

What This Means

SPY and QQQ (0.92): You are effectively running one position. A shock to one will hit the other with 92% efficiency.

SPY and IWM (0.84): You are effectively running one position. A shock to one will hit the other with 84% efficiency.

Diversification score: 77/100 (Moderately diversified). Average pairwise correlation is 0.231. Combining these assets provides meaningful risk reduction relative to holding any single asset.

TLT hedge: TLT shows a negative correlation with SPY (-0.38). Long bonds historically reduce portfolio drawdowns during equity selloffs — though this relationship weakened during the 2022 inflationary regime.

GLD as diversifier: Gold's near-zero correlation with equities makes it a genuine diversifier in a mean-variance framework — it adds return variation that is mostly independent of equity moves.