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Correlation Guides

Practical, no-fluff guides to correlation and diversification for ETF investors — what the Pearson coefficient means, why it drives diversification, and how to read a correlation matrix. Free to read, and every guide links straight into the tool so you can try as you learn.

Statistics · 7 min

What is the Pearson correlation coefficient?

A plain-English explanation of the Pearson correlation coefficient (r): the formula, what the number means from −1 to +1, and how investors use it to compare ETFs.

Portfolio · 6 min

ETF correlation and diversification

How correlation drives real diversification. Why holding many ETFs that all move together isn't diversified, and how to use correlation to build a steadier China ETF portfolio.

How-to · 5 min

How to read a correlation matrix

A correlation matrix shows every pairwise correlation in a basket at once. Learn to read the grid and color heatmap, and what to look for when comparing China ETFs.

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