> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hextrade.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Portfolio Correlation

> Measure co-movement across algorithms to improve diversification quality.

# Correlation

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

> \[GIF placeholder: Correlation matrix walkthrough]

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## 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.

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## How to use correlation in allocation

1. Identify highly correlated groups.
2. Avoid concentrating size in tightly correlated clusters.
3. Blend lower-correlation algorithms to improve diversification.
4. Validate changes in [Portfolio Analytics](/portfolio/analytics).

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

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## 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.