Emerging Markets Correlations

AECSX Fund

USD 14.87 0.10 0.67%

The correlation of Emerging Markets is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Emerging Markets Correlation With Market

Modest diversification

The correlation between Emerging Markets Small and DJI is 0.22 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Small and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Emerging Markets Small. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in state.

Moving together with Emerging Mutual Fund

0.75	CDBCX	Diversified Bond	Pair Corr
0.83	AMKIX	Emerging Markets	Pair Corr
0.84	TWACX	Short Term Government	Pair Corr
0.65	TWARX	Short Term Government	Pair Corr
0.89	TWGAX	International Growth	Pair Corr
0.89	TWIEX	International Growth	Pair Corr
0.83	TWMIX	Emerging Markets	Pair Corr

Related Correlations Analysis

	CCMSX	RTOUX	QUAIX	GLVIX	HSCVX	VYRDX
CCMSX		0.0	0.0	0.0	0.0	0.0	CCMSX
RTOUX	0.0		0.93	0.4	0.99	0.91	RTOUX
QUAIX	0.0	0.93		0.6	0.91	0.87	QUAIX
GLVIX	0.0	0.4	0.6		0.37	0.39	GLVIX
HSCVX	0.0	0.99	0.91	0.37		0.93	HSCVX
VYRDX	0.0	0.91	0.87	0.39	0.93		VYRDX
	CCMSX	RTOUX	QUAIX	GLVIX	HSCVX	VYRDX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

HSCVX	+ 0.99	RTOUX
QUAIX	+ 0.93	RTOUX
VYRDX	+ 0.93	HSCVX
VYRDX	+ 0.91	RTOUX
HSCVX	+ 0.91	QUAIX
VYRDX	+ 0.87	QUAIX

High negative correlations

VYRDX	- 0.0	CCMSX
HSCVX	- 0.0	CCMSX
GLVIX	- 0.0	CCMSX
QUAIX	- 0.0	CCMSX
RTOUX	- 0.0	CCMSX

Risk-Adjusted Indicators

There is a big difference between Emerging Mutual Fund performing well and Emerging Markets Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Emerging Markets' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CCMSX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
RTOUX	0.79	(0.01)	(0.02)	(0.07)	1.12	(0.84)	1.68	(1.34)	9.68
QUAIX	1.01	0.04	0.02	0.41	1.35	(1.03)	1.92	(2.07)	9.07
GLVIX	0.73	0.02	0.00	0.15	1.02	(0.76)	1.24	(1.73)	5.26
HSCVX	0.69	(0.01)	0.00	(0.14)	0.00	0.00	1.49	(1.35)	8.08
VYRDX	0.75	0.01	0.00	0.03	0.99	(0.85)	1.66	(1.25)	10.40

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