Correlation cluster
A group of instruments whose returns move together more than with the rest.
In Kereon
Charts · Correlation. Average-linkage hierarchical clustering on 1 − correlation: two groups join while the average correlation between their members is at least the threshold. The map starts from classical multidimensional scaling of √(2(1 − r)) and settles under a force layout: every pair pushes apart, and a pair pulls together by how far its correlation runs above the universe's average, so groups gather. Lines join pairs at or above the threshold.
Also called: cluster, clusters.