Work out correlation of two assets instantly with clear inputs, formula shown and shareable results.
Correlation is covariance normalised by the two volatilities, so it always lies between −1 and +1 and is comparable across asset pairs. Its square gives the share of variation the two assets have in common.
Correlation
ρ = Cov(A,B) / (σ_A σ_B); R² = ρ²
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Raw covariance depends on the units and scale of returns, so it cannot be compared across pairs. Correlation can.
It helps, but check whether it holds in stressed markets — that is when the diversification is actually needed.