Rank the following from 1 to 4 in terms of correlation with U.S. equities. Let “1″ be most correlated, and “4″ be least. The actual correlations can be seen by dragging your cursor after the colon in each line below:
- Non-U.S. equities: 0.71 (Rank 2)
- U.S. bonds: 0.20 (Rank 4)
- Real estate: 0.59 (Rank 3)
- Private equity: 0.90 (Rank 1)
Surprised? I know i was.
Source: Ennis Knupp