| EMCR Etf | | | USD 30.82 0.05 0.16% |
The current 90-days correlation between Xtrackers Emerging and Xtrackers MSCI Emerging is 0.92 (i.e., Almost no diversification). The correlation of Xtrackers Emerging 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.
Xtrackers Emerging Correlation With Market
Modest diversification
The correlation between Xtrackers Emerging Markets and DJI is 0.23 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Emerging Markets and DJI in the same portfolio, assuming nothing else is changed.
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Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Xtrackers Emerging Markets. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in main economic indicators.