“Asset allocation is not that different from what mom told us when growing up: don’t put all your eggs in one basket.” – David I. Lampe
Having a well diversified portfolio is key to risk management, and asset allocation is a vital part of this. Morningstar have the underlying holdings of thousands of funds, which makes it possible to compare two or more funds in order to see how closely they correlate.
Use the Correlation Matrix to see how similar the funds in a portfolio or list are. Click the link in the image below for further details.