International Equity Correlations

TFESX Fund  USD 11.60  0.10  0.85%   
The current 90-days correlation between International Equity and Foreign Smaller Panies is 0.87 (i.e., Very poor diversification). The correlation of International Equity 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.

International Equity Correlation With Market

Very weak diversification

The correlation between International Equity Series and DJI is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding International Equity Series and DJI in the same portfolio, assuming nothing else is changed.
  
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in International Equity Series. 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 International Mutual Fund

  0.71TEBIX Franklin Mutual BeaconPairCorr
  0.81TEDMX Templeton DevelopingPairCorr
  0.78TEDIX Franklin Mutual GlobalPairCorr
  0.78TEDSX Franklin Mutual GlobalPairCorr
  0.78TEDRX Franklin Mutual GlobalPairCorr
  0.78TEFRX Templeton ForeignPairCorr
  0.78TEFTX Templeton ForeignPairCorr
  0.79TEGBX Templeton Global BondPairCorr
  0.78TEMFX Templeton ForeignPairCorr
  0.86TEMEX Franklin Mutual BeaconPairCorr
  0.94TEMIX Franklin Mutual EuropeanPairCorr
  0.94TEMQX Mutual QuestPairCorr
  0.89TEQIX Franklin Mutual QuestPairCorr
  0.88LGGAX Clearbridge InternationalPairCorr
  0.95TEURX Franklin Mutual EuropeanPairCorr
  0.92LGIEX Qs International Equity Potential GrowthPairCorr
  0.96WAARX Western Asset TotalPairCorr

Moving against International Mutual Fund

  0.36TEMGX Templeton Global SmallerPairCorr
  0.37SAGYX Clearbridge AggressivePairCorr
  0.36TESGX Templeton Global SmallerPairCorr
  0.43SASMX Clearbridge Small CapPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between International Mutual Fund performing well and International Equity 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 International Equity's 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.