Whitepaper - May 2019

The Stock-Bond Correlation – Where to From Here?

With earnings and bond yields converging and starting to move in the same direction more and more often, many investors are beginning to wonder what the relationship between the two major asset classes will look like going forward. In this paper, we review the historical relation between share and bond prices and relate it to recent developments. We examine the impact on portfolio risk, explore alternatives for diversification options and provide an outlook on a potential future relationship.


Christoph Schon, CFA, CIPM

Senior Principal, Applied Research