^GSPC

SCHD

MSFT

NVDA

CL=F

^NDX

The portfolio is moderately diversified with a classic 60/40 stocks-to-bonds allocation, reflected in the correlation matrix. The very low correlation between BND (bonds) and VTI (stocks) at -0.14 indicates that these two asset classes move somewhat independently, which enhances diversification benefits by reducing overall portfolio volatility. The near-zero correlation of 0.01 between BND and the portfolio suggests that bonds contribute a stabilizing effect without closely tracking the portfolio’s overall movements.

The portfolio’s correlation with VTI is very high at 0.98, indicating that the portfolio’s returns are heavily influenced by the stock component. This is expected given the 60% allocation to stocks, but it also means the portfolio’s performance is largely driven by equity market movements. The dominance of VTI in the portfolio is underscored by this strong correlation, implying that while bonds provide diversification, the portfolio behaves more like an equity portfolio in terms of return patterns.

There are no heavily correlated positions that hurt diversification since the bond and stock components show low to negative correlation. However, the high correlation between the portfolio and VTI suggests a concentration risk toward equities, which could lead to higher volatility during market downturns. Overall, the portfolio strikes a balance between diversification and equity exposure but leans toward concentration in stocks, making it less diversified than a portfolio with a more balanced or multi-asset approach.

The portfolio is moderately diversified, exhibiting a mix of correlations that both support and limit diversification benefits. The correlation matrix reveals that the two bond positions, IEF and TLT, are very highly correlated at 0.92, indicating a strong overlap in their behavior and potentially reducing the diversification benefit within the fixed income portion of the portfolio. This high correlation suggests these positions may move similarly in response to interest rate changes, which could concentrate risk in that segment.

Conversely, the portfolio benefits from lower correlations among other assets. For example, VTI (a broad equity index) shows very low correlations with GLD (gold) at 0.07 and negative correlations with IEF and TLT (-0.26 each), which enhances diversification by combining assets that respond differently to economic conditions. Similarly, DBC (commodities) has moderate correlations with equities and gold but negative correlations with bonds, further contributing to risk reduction through diversification.

Regarding the portfolio's overall correlation with individual positions, it is most strongly correlated with TLT (0.63) and IEF (0.59), indicating that the bond components have a dominant influence on the portfolio's behavior. The equity position VTI and gold GLD have moderate correlations with the portfolio (0.43 and 0.44, respectively), while commodities DBC has the lowest correlation (0.29), suggesting it plays a smaller but distinct role in shaping portfolio returns.

The dominance of the bond positions in driving portfolio correlation points to a concentration risk in fixed income, despite the inclusion of diverse asset classes. The presence of low or negative correlations between equities, commodities, and bonds helps mitigate this risk to some extent, but the strong bond correlation implies that shocks affecting interest rates could have outsized effects on the portfolio.

Overall, the portfolio is not highly concentrated but leans toward fixed income dominance with some meaningful diversification benefits from gold, equities, and commodities. The mix of correlations suggests a balanced approach aimed at weathering different economic environments, consistent with the portfolio's "All Weather" objective.

The portfolio is moderately diversified within the semiconductor sector but exhibits relatively high correlations among its constituent stocks, indicating a degree of concentration risk. Most individual positions show correlations with each other in the range of approximately 0.47 to 0.82, which suggests that the stocks tend to move somewhat in tandem. This high inter-stock correlation reduces the benefits of diversification within the portfolio.

There are no pairs of stocks with extremely high correlations (close to 1.0) that would indicate near-duplication of exposure, but many correlations are above 0.6, such as between ADI and TXN (0.82), SWKS and ADI (0.7), and TXN with SWKS (0.68). These relatively strong correlations suggest that these positions share similar risk factors or market drivers, which can limit risk reduction.

On the other hand, the lowest correlations in the matrix hover around 0.47 (e.g., between AMD and AVGO, or AMD and SWKS), which is still moderately positive and does not provide significant diversification benefits. There are no notably low or negative correlations that would meaningfully offset portfolio volatility.

Regarding the portfolio's correlation with individual positions, it ranges from 0.71 (INTC) to 0.82 (ADI), indicating that no single stock overwhelmingly dominates the portfolio's behavior, but ADI and TXN have the highest correlations with the portfolio, suggesting they have a relatively larger influence on overall portfolio returns.

In summary, while the portfolio includes multiple semiconductor stocks, the high inter-correlations and the absence of lowly correlated assets imply that it is more concentrated than diversified. The portfolio’s risk profile is likely closely tied to sector-specific factors, and it may not sufficiently mitigate idiosyncratic risks through diversification.

The portfolio is moderately diversified with a mix of asset classes that exhibit varying degrees of correlation. The highest correlations are observed between VTI (a broad U.S. stock market ETF), VEU (an international equity ETF), and VNQ (a real estate ETF), with correlations ranging from 0.58 to 0.85. These high correlations suggest that these equity-related positions tend to move in similar directions, which can reduce diversification benefits within the equity segment of the portfolio.

IEF (a Treasury bond ETF) shows low to negative correlations with most other positions, particularly with VTI (-0.28) and VEU (-0.23), indicating that it provides effective diversification by potentially offsetting equity market volatility. GSG (a commodity ETF) also has relatively low or negative correlations with IEF (-0.20) and moderate correlations with equity ETFs, which adds a layer of diversification through exposure to commodities.

The portfolio’s correlation with individual positions is highest with VTI (0.85), VEU (0.85), and VNQ (0.76), indicating that these equity exposures dominate the portfolio’s overall behavior. The lower correlation with IEF (-0.13) and moderate correlation with GSG (0.60) show that fixed income and commodities contribute to diversification but have less influence on the portfolio’s overall movement.

In summary, while the portfolio benefits from including lowly correlated assets like IEF and GSG, the strong correlations among the equity positions suggest a concentration in equities that somewhat limits diversification. The portfolio leans toward an equity-dominant allocation with complementary fixed income and commodity holdings that help mitigate risk but do not fully offset the high equity correlations.

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