Low Correlation
The main goal of this sample is to demonstrate how some very risky asset classes can be combined to create a nice portfolio. All of the asset classes in this portfolio have low correlation between each other, a high standard deviation, and high returns. The bonds are included as they don’t correlate with the other assets and provide some stability. The result of this combination is a portfolio with an excellent return and low standard deviation.
Portfolio Allocation
- Money Market - 5%
- Total Bond Market - 15%
- Commodities - 20%
- Emerging Markets - 20%
- REIT - 20%
- Small Cap Value - 20%
Portfolio Information
Yearly Returns
- 2008 -32.19%
- 2007 9.1%
- 2006 17%
- 2005 14.6%
- 2004 20.04%
- 2003 32.7%
- 2002 5.72%
- 2001 3.05%
- 2000 13.3%
- 1999 16.22%
- 1998 -11.71%
- 1997 8.22%
- 1996 18.97%
- 1995 16.19%
- 1994 -0.15%
- 1993 26.54%
- 1992 13.59%
- 1991 30.79%
- 1990 -2.84%
- 1989 25.27%
- 1988 21.84%
- 1987 9.46%
- 1986 18.89%
- 1985 27.87%
- 1984 8.63%
- 1983 24.48%
- 1982 14.9%
- 1981 2.95%
- 1980 18.1%
- 1979 23.14%
- 1978 23.1%
- 1977 20.28%
- 1976 22.6%
- 1975 26.16%
- 1974 -10.71%
- 1973 3.48%
- 1972 21.82%
Portfolio Stats
- Average Return 13.55%
- CAGR 12.69%
- Standard Dev 13.23%
- Correlation US -0.13