Customize asset class correlations

Availability

❌ Trial ❌ Basic ❌ Premium ✔️ Platinum

In addition to holding a Platinum license, enabling Custom Asset Classes is required to utilize this powerful tool within RightCapital.

Maintain complete control over the modeling and projection included in RightCapital with advanced correlation control. To access the Correlations tab, be sure to have enabled Custom Asset Classes by reaching out to our Support Team.

Once available, find correlations by navigating to Assumptions > Correlation tab from the Advisor Portal.

Correlations between asset categories are used when generating the return scenarios used in the Monte Carlo simulations reflected on the Retirement > Analysis screens.  The correlations reflect how similar returns in each asset category will be in any given year. 

Adjust the correlation between any two asset categories by adjusting the number in the grid corresponding to the first category on the left and the second category on the top.  Once updates are completed, click Save

A calculation will run to ensure that the correlation matrix is valid; if it is not, an error message will display and values will need to be corrected. An example of an invalid correlation matrix would be if category A is 100% correlated with category B, category B is 100% correlated with category C, but category A is negatively correlated with category C.

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