Moolanomy Personal Finance

Correlation

Correlation is a statistic concept that measures the strength of the relationship between two variables. Values can range from +1.00 (perfect correlation) to -1.00 (perfect negative correlation). In investing, investments with low or negative correlation are good diversifiers and usually help improve a portfolio efficiency, reduce risk, and improve the rate of return.

Articles that mention "Correlation"

thumb 8 Ways to Reduce Pet Care Costs

Having a pet can bring great joy, laughter and comfort to all around. Unfortunately, they can also mean additional, even unexpected, expenses in today’s already tough economy. According to the ASPCA, approximately 500,000 to 1,000,000 cats and dogs are currently in danger of abandonment due to the economic downturn. While caring for a pet is [...]

thumb Free Credit Report Cards From Credit Karma

One of my favorite financial websites is Credit Karma. I love the ability to get and track my credit score for free. Now they are expanding their services to provide you with credit report information. The new feature is called Credit Report Cards, and it is also free. I checked it out today and I [...]

thumb Buying iShares Barclays TIPS Bond (TIP) ETF versus Individual TIPS

In this Ask the Expert with Larry Swedroe article, Thomas is wondering why his iShares Barclays TIPS Bond TIP ETF hasn’t paid dividend since last October and if he should switch to individual TIPS through Treasury Direct instead. Here’s the question from Thomas:

I own the TIP ETF (iShares Barclays TIPS Bond). It has not paid [...]

New York’s 529 College Savings Program Adds International Fund To The Direct Plan

I am thrilled with the announcement made by the New York’s 529 College Savings Program today. They finally decided to add an international investment option to their 529 Direct Plan. This new investment is called the Developed Markets Index Portfolio, which invest 100% in Vanguard Institutional Developed Markets Index Fund.
I think this is a really good [...]

thumb Alternative Investments, Correlation, and Diversification

In this Ask the Expert with Larry Swedroe article, Rob observed that none of the alternative investments provided sufficient risk reduction to soften the impact of the current Bear Market. Diversification doesn’t seem to be working. What went wrong? Here’s the question from Randy:
Dear Larry,
I’m reading your book, The Only Guide to Alternative Investments You’ll [...]

thumb Low Cost Diversification With Vanguard Total World Stock ETF (VT)?

In this Ask The Expert With Larry Swedroe article, the reader, Murali, is wondering if she could use the Vanguard Total World Stock ETF (VT) to simplify and diversify her investment portfolio.  Vanguard is known for its high quality and low cost investment products, and the Total World Stock ETF should provide most of the [...]

thumb What Is The Best Porfolio Rebalancing Strategy?

In this Ask The Expert With Larry Swedroe article, the reader (Edward) is wondering what’s the best way to rebalance his investment portfolio and increase his fixed asset allocation.  Due to the stock market crash, he is reluctant to sell his beaten down stocks to increase his bonds allocation.  Is it better just to allocate [...]

TIPS Bonds, How Treasury Inflation-Protected Securities Work

Treasury Inflation-Protected Securities (TIPS) is a type of Treasury securities that provides protection against inflation and real return.  I don’t know if TIPS is the best bond to buy or not, but I am beginning to think that it is after reading articles and books by Larry Swedroe over the years.  At the very least, [...]

thumb Ask The Expert with Larry Swedroe, January 2009 Issue

This is the 12th issue of the Ask The Expert column by Larry Swedroe. You can see Larry’s full biography and important disclaimer below. If you are interested in having your question answered by Larry, please send me an email via the contact page.
Now, let’s get to the questions and answers (please note that the [...]

Financial Definitions

The financial terms below are commonly used throughout this web site.  Clicking on a term will send you to the term page with a brief definition and a list of articles related to the term.

#
A
B

401(k)
529 Plan

Adjustable Rate Mortgage (ARM)
Alternative Income
Annual Percentage Rate (APR)
Annual Percentage Yield (APY)
Annuity
Arbitrage
Asset Allocation
Asset Location

Bond
Bond Fund
Budgeting

C
D
E

Capital Gains
Certificate of Deposit (CD)
Commodities
Contribution Limit
Correlation
Credit Report
Credit [...]

Your Credit Score

Featured Reviews

Featured Articles

Popular Tags

401(k) alternative income asset allocation bond budgeting business career college credit card credit card debt credit score Dave Ramsey debt diversification economy emergency fund ETF expenses financial planning frugal frugality goal setting high yield savings accounts income inflation insurance interest rate investing IRA Larry Swedroe life insurance loan making money mortgage mutual fund peer-to-peer lending personal finance real estate retirement Roth IRA saving money smart spending stock stock market taxes
 

Important Notice:

The information found on Moolanomy is provided and intended for informational and entertainment purposes only and does not constitute financial, legal, or other advice of any kind. The information contained on this site is aimed at a general audience, and does not attempt to offer specific advice to your specific circumstances. If you are looking for professional advice, you should consult with an independent financial adviser.

This site contains information about third party products and services, such as credit card offers, online banking, discount brokers, and credit score services. While we endeavor to ensure that the information presented on this site is accurate at the time of publication, any offers and rates shown on Moolanomy can and do change without notice. Visit the official site of the offer for up-to-date information.

For additional information, please review our Terms and Conditions.

Affiliate Relationships

As required by FTC regulations, please note that we have a financial relationship with many of the companies mentioned on this site. We occasionally review products or services that we have been given access to for free. However, we do not accept compensation in any form in exchange for positive reviews and the reviews found on this site represent the opinions of the author.

Archives By Year

2007, 2008, 2009, and 2010