Use the Correlation Matrix as a diversification tool to see how closely related selected funds and stocks are to one another, or to indexes or Morningstar categories.
A maximum of 15 items can appear in the Correlation Matrix, and a minimum of two must be charted. In order to appear in the Correlation Matrix, funds must have at least three years of history.
A Correlation Matrix chart can be created in multiple ways; from the top menu or from the Research, Workspace, or Portfolio Management tabs.
To create the Correlation Matrix chart from the top menu:
From the top menu of Morningstar Office, click on New, Charts, Correlation Matrix to open the Select Investments dialog box.
Select the method you will use to identify the investments for your chart.
Under Name/Ticker/ISIN/CUSIP/SecId, select the following:
Single Investment and enter Investment Name/Ticker/ISIN/CUSIP/SecId into the text box, or
Multiple Investments and click OK to access the Find Investments dialogue box.
Select from Universe or saved Lists or Searches.
Select Find by method (Name/Ticker/ISIN/CUSIP/SecId).
Enter Investment and click Go.
Note: Your search can include both Morningstar-tracked securities and user-defined securities.
Click Search Criteria to enter a complex query to find a group of investments. When you click this option, click the arrow to select the investment universe you will search in. Click OK. The Search dialog box opens.
Click My Lists to select items from one of your saved investment lists. When you click this option, click the arrow to select which investment list you want to choose securities from.
When you have selected the desired investments, click OK.
The selected investments are displayed on the chart.
To create a Correlation Matrix from the Research, Workspace, or Portfolio Management tabs:
In the left navigation pane, click the Research, Workspace, or Portfolio Management tab.
Drill down until you get to the list of investments.
Under Research, select the Universe category, then the universe to open the associated investments.
Under Workspace, go to Investment Lists, My Lists to open the associated investments.
Under Portfolio Management, go to the Accounts or Securities in Accounts page to view the list of investments.
Select from two to 15 items.
From the Action menu, point to Charts (Portfolio Graphs in Portfolio Management, Accounts page), and click Correlation Matrix. The Correlation Matrix appears, with a default time period of three years.
Click the Time Range drop-down menu and then click the Reset button to change the time period. Choose from 1, 3, 5, 10, and 15 years. If an item does not have enough investment history, NA appears.
Note: Hover over any square on the chart to view the names of the two funds being compared.