Correlation

The Correlation tab computes how selected algorithms move relative to each other across shared trading days.

[GIF placeholder: Correlation matrix walkthrough]

Reading the matrix

Values near +1: strategies tend to move together.
Values near 0: weak relationship.
Values near -1: strategies tend to offset each other.

How to use correlation in allocation

Identify highly correlated groups.
Avoid concentrating size in tightly correlated clusters.
Blend lower-correlation algorithms to improve diversification.
Validate changes in Portfolio Analytics.

[Image placeholder: Correlation matrix with shared-days note]

Important context

Correlation is based on overlapping data windows.
Correlation can change over time as market regimes shift.
Use correlation with drawdown and trade-level evidence, not in isolation.