Asset Class Correlation & Divergence

Understanding how different asset classes correlate with each other, especially with stock markets, is crucial for diversification and managing portfolio risk.

The top 3

  1. Top 3 Assets Least Correlated to Stocks: Assets with low or negative correlation to the S&P 500 include US bonds, particularly long-term treasuries, gold and precious metals, and certain commodities like oil and natural gas.
  2. Top 3 Best Performing Asset Classes (2026 YTD): As of mid-2026, commodities lead all asset classes with a +24.03% year-to-date return, followed by U.S. small-cap equities and emerging market equities.
  3. Top 3 Most Volatile Traditional Assets: Traditional asset classes known for high volatility include commodities (like oil and natural gas), emerging market equities, and certain real estate investment trusts (REITs).

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