--- title: "Dynamic Correlation: Implications for Asset Allocation - Burney Investment Management" description: A key part of the typical financial planning process is determining the proper mix of stocks and bonds to come to the optimal risk-reward tradeoff for a client based on their unique ability to take on and tolerate risk. We have long taken issue with the conventional wisdom surrounding asset allocation, questioning the time horizon ... --- [Skip to content](https://burneyinvest.com/blog/dynamic-correlation-implications-for-asset-allocation#main-content) [![Burney Investment Management](https://burneyinvest.com/hs-fs/hubfs/theme/Burney_Invest_Color_Horizontal_%232b.png?width=300&height=110&name=Burney_Invest_Color_Horizontal_%232b.png "Burney Investment Management")](https://burneyinvest.com/) - About - [Company Overview](https://burneyinvest.com/about) - [Burney Difference](https://burneyinvest.com/the-burney-difference) - Strategies - [Size & Style Responsive](https://burneyinvest.com/strategies/size-style-responsive-ssr/) - [The Burney Master Portfolio](https://burneyinvest.com/strategies/the-burney-master-portfolio/) - [Personalized Portfolios](https://burneyinvest.com/strategies/personalized-portfolios/) - [Stock Selection](https://burneyinvest.com/strategies/stock-selection/) - [Team](https://burneyinvest.com/team) - [Resources](https://burneyinvest.com/blog) - [Get In Touch](https://burneyinvest.com/contact) 2.2.2017 # Dynamic Correlation: Implications for Asset Allocation [Andy Pratt, CFA](https://burneyinvest.com/blog/author/andy-pratt-cfa) ![](https://20453469.fs1.hubspotusercontent-na1.net/hubfs/20453469/Theme/dots_y4.svg) ##### Popular Posts [How to Read VIX and VIX Term Structure](https://burneyinvest.com/blog/how-to-read-vix-and-vix-term-spread) [What Happened in the Stock Market Yesterday?](https://burneyinvest.com/blog/what-happened-in-the-stock-market-yesterday) [Performance Matters - 7 Steps Toward More Effective Investing](https://burneyinvest.com/blog/performance-matters-7-steps-toward-more-effective-investing) A key part of the typical financial planning process is determining the proper mix of stocks and bonds to come to the optimal risk-reward tradeoff for a client based on their unique ability to take on and tolerate risk. We have long taken issue with the [conventional wisdom surrounding asset allocation, questioning the time horizon used to evaluate risk](https://www.burney.com/wp-content/uploads/2013/09/MeritofConventionalWisdom.pdf) and whether [today’s advice is leading to overly conservative long-term outcomes](https://www.burney.com/wp-content/uploads/2016/09/A-Conversation-on-Risk-and-Retirement.pdf). [Download our latest research piece \[PDF\] with this link](https://burneyinvest.com/hubfs/PDFs/Dynamic%20Asset%20Correlations%20During%20Times%20of%20Market%20Stress.pdf) that explores the effectiveness of diversification and the dynamic nature of correlation between commonly used asset classes using the 2008 Financial Crisis as case study. --- *The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. Burney Company does not provide legal, tax, or accounting advice, but offers it through third parties. Before making any financial decisions, clients should consult their legal and/or tax advisors.* ## Articles you may enjoy 09.12.16 #### [Are You Taking Enough Risk to Enjoy a Comfortable Retirement?](https://burneyinvest.com/blog/are-you-taking-enough-risk-to-enjoy-a-comfortable-retirement) [![](https://20453469.fs1.hubspotusercontent-na1.net/hubfs/20453469/Theme/circle_right.svg)](https://burneyinvest.com/blog/are-you-taking-enough-risk-to-enjoy-a-comfortable-retirement) 09.19.18 #### [Back to School: What You Need to Know About 529 Plans](https://burneyinvest.com/blog/back-to-school-what-you-need-to-know-about-529-plans) [![](https://20453469.fs1.hubspotusercontent-na1.net/hubfs/20453469/Theme/circle_right.svg)](https://burneyinvest.com/blog/back-to-school-what-you-need-to-know-about-529-plans) 07.11.16 #### [Are Index Trends Signaling a Change in the Market?](https://burneyinvest.com/blog/equal-vs-market-cap-weighted-indexes) [![](https://20453469.fs1.hubspotusercontent-na1.net/hubfs/20453469/Theme/circle_right.svg)](https://burneyinvest.com/blog/equal-vs-market-cap-weighted-indexes) ![](https://burneyinvest.com/hubfs/theme/burney-invest-logo-white-1-1.png) - [Size & Style Responsive](https://burneyinvest.com/strategies/size-style-responsive-ssr/) - [Burney Master Portfolio](https://burneyinvest.com/strategies/the-burney-master-portfolio/) - [Personalized Portfolios](https://burneyinvest.com/strategies/personalized-portfolios/) - [Stock Selection](https://burneyinvest.com/strategies/stock-selection/) - [About](https://burneyinvest.com/about) - [Team](https://burneyinvest.com/team) - [Resources](https://burneyinvest.com/blog) - [Contact](https://burneyinvest.com/contact) **Headquarters** 1800 Alexander Bell Dr. STE 510 Reston, VA 20191 Advisory services are offered through the Burney Company, an investment advisor registered with the U.S. Securities & Exchange Commission. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability. © 2026 Burney Wealth Management | [Research](https://burneyinvest.com/research) | [Privacy Statement](https://burneyinvest.com/privacy-policy) | [Terms & Conditions](https://burneyinvest.com/terms-and-conditions) | [Disclosures](https://burneyinvest.com/disclosures) | [ADV](https://44214779.fs1.hubspotusercontent-na1.net/hubfs/44214779/Burney%20Company%20ADV%20Part%202A%20IM%2026%20REV.pdf) | [Form CRS (ADV Part 3)](https://44214779.fs1.hubspotusercontent-na1.net/hubfs/44214779/Burney%20Company%20Form%20CRS_March%202026.pdf) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Andy Pratt, CFA", "url" : "https://burneyinvest.com/blog/author/andy-pratt-cfa" }, "dateModified" : "2024-05-21T19:38:46.908Z", "datePublished" : "2017-02-02T17:08:54.000Z", "headline" : "Dynamic Correlation: Implications for Asset Allocation - Burney Investment Management", "mainEntityOfPage" : { "@id" : "https://burneyinvest.com/blog/dynamic-correlation-implications-for-asset-allocation", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://burneyinvest.com/hubfs/theme/Burney_Invest_Color_Horizontal_%232b.png" } } } ```